What Is Running Account Settlement / Quarterly Settlement?

What Is Running Account Settlement / Quarterly Settlement?

Running Account Settlement, also called Quarterly Settlement, is a SEBI-mandated process in which brokers return idle client funds from the trading account to the client’s registered bank account. This helps you retain control over unutilized funds and reduces the risk of misuse.

Frequency of Settlement

  • You can opt for a settlement cycle of 30 days or 90 days.
  • If there are no trades for 30 consecutive calendar days, funds are mandatorily returned within 3 working days even if you selected the 90-day cycle.
  • Payouts are credited to your registered bank account mapped to your FYERS account.
Important: You cannot opt out of Running Account Settlement. The cycle resets only when a trade is executed, not when an order is placed.

Example

You add ₹50,000 on 1 January and place no trades for 30 days. Your funds will be transferred back to your bank account by around 2 February (30 calendar days plus up to 3 working days for the payout).

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 (total 125%).

Sample calculation

  • Fund balance: ₹5,00,000
  • Open NIFTY futures margin requirement: ₹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…

ScenarioWhat you can do
You do not want automatic transfersSEBI requires settlement of idle funds. If you need funds to stay in the account, keep positions open with adequate margins.
You traded after 28 daysThe 30-day inactivity clock resets only if the order is executed. Placing but not executing an order does not reset the clock.
You want to retain funds for upcoming tradesMaintain open positions with the required margin. Otherwise, expect idle funds to be credited to your bank account as per the cycle.
Your bank details are outdatedUpdate your registered bank account first to avoid payout failures. If you need help, contact us.
Tip: Watch for our pre-settlement alerts, keep your bank mandate active, and ensure sufficient balance to meet margins if you plan to carry positions.

Last updated: 16 Dec 2025

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