Regulatory Alerts2025-01-06
SEBI Circular on Settlement of Accounts for Inactive Clients
The Securities and Exchange Board of India (SEBI) has revised the timeline for settling funds of clients who have not traded for 30 calendar days to reduce procedural inefficiencies for stock brokers. Under the modified Clause 5.4 of the June 2021 Circular and Clause 47.4 of the Master Circular, Trading Members must now return the entire credit balance of such inactive clients on the upcoming dates of the monthly running account settlement cycle. This change applies irrespective of the client's preferred settlement cycle, although clients who trade again before the next monthly settlement date will revert to their original quarterly or monthly settlement preferences.
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