The market regulator Securities and Exchange Board of India (SEBI) on Wednesday came out with fresh guidelines on settlement of running accounts of clients' funds lying with stock brokers, to be applicable from October 1.

Under the guidelines, the settlement of the running account of funds of the client will be settled by the trading member after considering the End of the day obligation of funds as on the date of settlement across all the exchanges on the first Friday of the quarter for all the clients.

Accordign to the information, the running account of funds will be settled on the first Friday of October 2022, January 2023, April 2023, July 2023, and so on for all the clients, the Sebi  said in a circular. If the first Friday is a trading holiday, then such settlement will happen on the previous trading day.

 For clients, who have opted for monthly settlement, running accounts will be settled on the first Friday of every month. If the first Friday is a trading holiday, then such settlement will take place on the previous trading day. In market parlance, the process of transferring back the unused funds of the clients to their accounts by stock brokers is called running account settlement.

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