We have an important update regarding Quarterly settlement of Running Account of Client’s Funds lying with ProStocks:

What is present practice of Quarterly Settlement of funds?

Present SEBI regulations requires that every stock broker should do settlement of funds for each client by returning excess (surplus) funds (balance) lying with Stock broker, once in every calendar quarter and gap between two such settlement should not be more than 90 days.

Stock broker are free to decide day of settlement and which can different day for different client.

This does not mean client will not get funds as and when requested. Clients are free to request withdrawal of funds as and when they wish and as many time as they want.

This settlement means whether the client has requested or not, Stock broker must return the excess funds once in every calendar quarter.

How to calculate surplus (excess) funds:

Clear Credit balance on the day of settlement:

Less: Funds PayIn due from client in next two working days

Less: Margin Obligation on unsettled open position

Less: 125% of Margin Obligation on the day of settlement

Balance if positive is Surplus / Excess funds. If negative it is deemed settlement, as nothing is payable under settlement mechanism.

What is the new change?

As per new SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/101, effective from Oct 2022 to Dec 2022 quarter,

All Stock Brokers across exchange and segment needs to do settlement of funds of all their client on First Friday of every calendar quarter. This has market wide impact.

First such date for settlement is 7th October 2022. We will initiate the settlement on the 7th and the funds should come to your bank account between 7th Oct 2022 night and 10th October 2022 morning. Since all the Stock brokers are doing across all their client on one single day may cause pressure on banking System and there may or may not be delay.

Important points to note:

Upcoming 4 Quarterly settlement dates are: