On July 27, 2022, the Securities and Exchange Board of India (SEBI) has issued new guidelines for settlement of running accounts of clients’ funds or securities lying with stock brokers. It also asked stock exchanges to issue operational guidelines to their members in this regard.
The new guidelines will be effective from October 1, 2022.
What is Running Account Settlement?
It is the process of transferring back the unused funds of the clients to their accounts by stock brokers is called running account settle.
Reason behind New Guidelines:
- To ensure uniformity in the settlement of running accounts.
- To protect the interests of investors in securities.
- To promote the development of, and to regulate the securities markets.
- The settlement of running account of client funds should be done by the trading members (TM) after considering the End of the day (EOD) obligation of funds as on the date of settlement across all the Exchanges on the first Friday of the Quarter (i.e., Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar) for all the clients.
- The running account of funds shall be settled on the first Friday of October 2022, January 2023, April 2023, July 2023, and so on for all the clients.
- If the first Friday is a trading holiday, then such settlement shall happen on the previous trading day.
- Clients who chose monthly settlement, running accounts will be settled on the first Friday of every month.
- Stock exchanges will continue online monitoring of timely settlement of running accounts for funds of clients and to verify that excess clients’ funds are not retained by the TM as on the date of settlement of running account.
- Stock exchanges will make amendments to the relevant Bye-laws, Rules, and Regulations, as necessary.
PSSSB Patwari Recruitment 2023: Tomorrow last date to apply for 710 posts
Punjab Subordinate Service Selection Board, PSSSB will end the application process for 710 Patwari posts tomorrow, April 2. Interested candidates who have not applied yet can apply online at sssb.punjab.gov. The last date for submission of the fee is 05th April...
TSLPRB final written exam dates announced, admit card releasing on April 3 | Competitive Exams
The Telangana State Level Police Recruitment Board (TSLPRB) has released the dates for the final written examinations for the posts of SCT SIs (Civil) and/or equivalent posts. Candidates can check the detailed schedule on the official website at www.tslprb.in....
ICAI CA May Exam 2023 for May 10 postponed in Karnataka, notice at icai.org | Competitive Exams
Institute of Chartered Accountants of India has postponed ICAI CA May Exam 2023 in Karnataka that was scheduled to be held on May 10, 2023. The official notice on postponement can be checked by candidates on the official site of ICAI at icai.org. ICAI CA May...