Market regulator SEBI has relaxed rules for accounts of clients of brokerage houses who have not traded for 30 days. The Securities and Exchange Board of India (SEBI) in its previous order had asked to settle such accounts within three working days. SEBI, in a circular issued on January 6, has said that brokerage houses can settle funds in such accounts on the upcoming settlement dates.
The circular states that as per the extant rules, accounts of clients where there has been no transaction for the last 30 days will be settled by the Trading Member™ within three days. However, after the petition by Brokers Industry Standards Forum (BISF), the market regulator had decided to change these conditions.
“The trading member is required to identify such clients on a daily basis as per the condition of the account within three working days,” the circular said. Therefore, changes have been made in clause 5.4 of the circular issued on 16 June 2021 and clause 47.4 of the circular issued on 9 August 2024.
For Clients having credit balance and who have not made any transaction in the last 30 days and if any amount of such Clients is lying with the Member for 30 days, the entire balance of the Client will be credited as per the monthly running account settlement dates. will be refunded. However, if the Client trades within 30 days and upcoming settlement dates, the settlement of the Client’s account will be issued by the Trading Member.