Joint Press Release on Settlement of Running Account of Clients’ funds by Trading Members

India, October 12, 2022: SEBI vide circular SEBI/HO/MIRSD/DoP/P/CIR/2022/101 dated July 27, 2022 has issued revised guidelines on “Settlement of Running Account of Clients’ Funds” by the trading members. As per the previous guidelines, the settlement of running account of client’s funds was required to be carried out by the member at least once within a gap of maximum 30 / 90 days between two settlements of running account as per the preference of the client. In accordance with the revised guidelines issued vide aforesaid circular, “Settlement of Running Account of Clients’ Funds” of all clients shall be done by the trading members on first Friday of the Month / Quarter, as per the preference opted by the client w.e.f. October 2022.

The settlement of running account of client funds was required to be carried out by all the Trading Members as per aforesaid revised guidelines on October 07, 2022 being the first Friday of the current Month/Quarter. Based on the information received from the Trading members, funds of approximately Rs. 31,884 Crores were released to approximately 1.23 crore clients on account of settlement carried out by Trading members and Clearing corporations had released funds and Fixed Deposit Receipts (FDRs) of approximately Rs. 30,173 Crores to the members.

In order to ensure smooth implementation of aforesaid single day settlement process, Regulator, Exchanges and Clearing Corporations, had taken following steps: –

· Webinars with trading members were held to address the queries of members with respect to requirement of running account settlement

· MIIs (Exchanges and Clearing Corporations) allocated a dedicated team to deal with queries/request received from members on October 07 and 08, 2022 with respect to settlement of running account

· Regular cut-off time to disseminate certain files by MIIs to members were shortened on October 07, 2022 with a view to carry out settlement process on time

· Close monitoring of members on continuous basis with respect to implementation of aforesaid guidelines

· Time window extended by Clearing Corporations on October 07,2022 for accepting release request of Cash/Fixed Deposit Receipts from members

· To create awareness amongst investors, Exchanges have sent an email to investors on their registered email id informing them about the settlement of their running account to be carried out by their trading member on October 07,2022.

We express our gratitude to SEBI for support and guidance towards the smooth implementation of the single day settlement. We also thank all Banks and Member Associations (ANMI / BBF / CPAI) for providing support for seamless implementation of the settlement of client funds on a single day.

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