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How to understand the net settlement on the funds statement when trading equity delivery?

The net settlement amount in the funds statement is the amount due or receivable from equity trades after deducting charges. This amount will match the amount on the contract note. To learn more about contract note, see What is a contract note?

Example scenario

In the contract note below, consider the following:

  • The sale of Bajaj Hindusthan Sugar Ltd (BAJAJHIND) as A. The pay-in obligation is ₹806.00.
  • The purchase of Sadbhav Infrastructure Projects Ltd (SADBHIN) as B. The pay-out obligation is ₹13,712.65. Payouts are denoted in brackets ().
  • Therefore the total pay-out is A - B = C, i.e. ₹(12,906.65).

The charges will be deducted or added from the pay-in or payout obligation as shown below:

The total amount payable is ₹12,924.17 (₹12,906.65( C ) + ₹17.52 (charges). The same will reflect on the fund statement and be debited from the account.