What Is Running Account Settlement / Quarterly Settlement?

What Is Running Account Settlement / Quarterly Settlement?

Running Account Settlement (RAS), also known as Quarterly Settlement, is a SEBI-mandated process where unused funds in your trading account are transferred back to your primary bank account. This ensures idle client funds are not held unnecessarily and remain under your control.

When does settlement happen?

  • Running Account Settlement is carried out on a quarterly basis.
  • Settlement is processed on the first Friday and/or Saturday of the quarter.
  • If the first Friday is a trading holiday, settlement is processed on the previous trading day.
Note: On the day quarterly settlement is processed, the Available Balance may not reflect the final post-settlement amount while the payout is being processed. The balance typically updates after 4:00 PM IST.

30-day inactivity rule (mandatory)

  • If there is no transaction in your trading account for 30 consecutive calendar days, any available credit balance is transferred back to your primary bank account.
  • The transfer is completed within 3 working days after the 30th day.
Important: The 30-day inactivity count resets only when a transaction is executed. Placing an order that is not executed does not reset the inactivity period.

Where are the funds credited?

  • Funds are credited only to your primary bank account linked to the trading account.
  • Settlement is considered complete only when the amount is credited to your bank account, not when a ledger or journal entry is created.

Margin retention when open positions exist

If there are open positions on the settlement date, funds may be retained to meet regulatory requirements, including:

  • 100% of the total margin requirement, and
  • an additional margin buffer of up to 125%.

This means up to 225% of the margin requirement may be retained, along with any pending pay-in obligations, if applicable.

Example

  • Available funds: ₹5,00,000
  • Margin required for open positions: ₹2,00,000
  • Maximum retention: 225% of ₹2,00,000 = ₹4,50,000
  • Amount transferred back: ₹50,000

Using UPI Autopay after quarterly settlement (optional)

Quarterly settlement cannot be skipped or disabled. However, UPI Autopay can be used to automatically transfer funds back into the trading account after the quarterly payout.

  • If UPI Autopay is set up with the frequency Quarterly+1, funds credited to the primary bank account after settlement are automatically transferred back based on the mandate.

Things to keep in mind

  • Running Account Settlement is mandatory and cannot be opted out of.
  • There is no client-facing option to choose the settlement frequency.
  • Settlement applies across all segments and exchanges combined.
  • If funds are retained due to open positions, a retention statement may be shared explaining the amount held.
  • On the settlement processing day, the Available Balance may update after 4:00 PM IST.

Last updated: 03 Jan 2026

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