Sebi revises settlement rules for running accounts

Mumbai: The Securities and Exchange Board of India (Sebi) has revised rules on the settlement of running accounts of clients' funds lying with stockbrokers.

The regulator said brokers should settle running accounts of clients' funds after considering the end-of-the-day obligation of funds as on the date of settlement across all the exchanges on the first Friday of the quarter.

For clients, who have opted for monthly settlement, running accounts should be settled on the first Friday of every month. If the first Friday is a trading holiday, then such settlement should happen on the previous trading day, Sebi said.


As per rules, brokers are required to carry out the settlement of funds and securities depending on the mandate of the client. They must maintain a gap of a maximum of 90 or 30 days, as per the choice of the client between two settlements of running account.

The new rules would be effective from October 1, 2022.