What is Running Account Settlement/Quarterly Settlement?
Running Account Settlement, also known as Quarterly Settlement, is a SEBI-mandated process where brokers must return idle client funds from the trading account back to the client’s registered bank account. This ensures that clients retain control over unutilized funds and helps prevent misuse.
Frequency of Settlement
- Clients can choose to opt for settlement every 30 days or 90 days.
- If no trades occur for 30 consecutive calendar days, funds are mandatorily returned within 3 working days, regardless of the selected cycle.
Example
If you add ₹50,000 on 1st January and do not place any trades for the entire month, your funds will be automatically transferred back to your bank account by 2nd February (i.e., 30 days + 3 working days).
Margin Retention During Open Positions
If you have open positions at the time of settlement, FYERS may retain:
- 100% of the margin requirement, and
- An additional 25% buffer (i.e., total 125%).
Sample Calculation:
- Fund Balance: ₹5,00,000
- Open Nifty Futures Position: ₹2,00,000
- Retained Margin = 125% of ₹2,00,000 = ₹2,50,000
- Payout = ₹5,00,000 – ₹2,00,000 – ₹2,50,000 = ₹50,000 transferred back
Official References
What If...
| Scenario | What You Can Do |
|---|
| You don't want automatic fund transfers | You can't opt out—SEBI mandates settlement even without trading activity. |
| You traded after 28 days | The 30-day clock resets only if the trade is executed. |
| You want to retain funds | Keep positions open; FYERS retains required margins per policy. |
Tip: You’ll receive automated alerts before your account is settled. Make sure your bank details are up to date to avoid delays.
Last updated: 18 Jun 2025
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