As per SEBI's circular, brokers must transfer funds from your trading account back to your bank account once a quarter. Transferring your unused funds back to your primary bank account is called the quarterly settlement of funds or the running account settlement.
Settlement follows the annual calendar published by the exchanges. However, if you are inactive for 30 calendar days, funds are transferred back to your primary bank account once a month. It will be reflected in your funds statement as follows:
How to update your settlement preference
You can switch your settlement cycle between monthly and quarterly by following these steps:
- Fill the request form. Ensure details match the account holder.
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Select your preferred cycle and complete the e-sign process.
Your preference will be updated within 48 hours, and a confirmation will be sent to your registered email.
You can also check the next quarterly settlement date by visiting console.zerodha.com/funds/overview.
Things to keep in mind
- Brokers may retain your funds if you have an outstanding position on the first Friday of the quarter on which settlement is scheduled and send you an email with the retention statement.
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If you opened your account after the previous quarterly settlement date, your funds will not be transferred back for the current quarter.