As per SEBI guidelines (WEB), stockbrokers must allocate client funds segment-wise with the Clearing Corporation (CC). This means that the balance maintained with Zerodha will be segregated and allocated segment-wise depending on the trades and margin utilisation. The Clearing Corporation (CC) sends emails and SMS to communicate the segment-wise allocation with clients. Clients are not required to take any action.

Example Scenario

• If the balance with Zerodha is ₹1,25,000, the funds can be used to trade in any segment. However, if a trade is taken in the EQ segment, where stocks worth ₹1,00,000 is purchased, the broker needs to allocate ₹20,000 (20% of ₹1,00,000) to the EQ segment with the CC, and ₹1,05,000 will get allocated to other segments based on the percentage of historical margin usage.
• If the balance with Zerodha is ₹1,25,000, the funds can be used to trade in any segment. However, if no trades are taken in any of the segments, 100% of the cash margin will be allocated to the EQ segment. However, clients can still use the funds to trade across segments.

The CC then notifies the client of the allocation made by the broker in different segments.