What is a quarterly settlement or running account settlement?

As per SEBI’s circular (WEB), funds in the trading account must be transferred back to the client's bank account once a quarter. Transferring unused funds back to the primary bank account is called quarterly settlement of funds or running account settlement.

At Zerodha, settlement happens on the first Friday of the quarter, i.e., the first Friday of January 2024, April 2024, July 2024 and so on. If the first Friday is a trading holiday, the settlement will happen on the previous trading day. However, funds are transferred back to the primary bank account once a month if the client is inactive for 30 calendar days. It will be reflected in the funds statement as follows:

The next quarterly settlement date can be checked by visiting console.zerodha.com/funds/overview.

Did you know?

• Brokers may retain the funds if a client has an outstanding position on the first Friday of the quarter on which settlement is scheduled and send out an email with the retention statement. To learn more, see What is a Retention statement?
• If the account is opened after the previous quarterly settlement date, the funds will not be transferred back for the current quarter.
• If the settlement of funds with a broker is monthly, the settlement date will be the first Friday of the month.