Comment on Same day fund withdrawals & update on quarterly settlements

Shailesh Raval commented on 13 Dec 2019, 10:36 AM

Thank You Matti,

SEBI regulation requires brokers to send back unutilized client funds ,,,,,,, at least once every quarter

How does SEBI define unutilized fund? No one is clear on definition. Zerodha defines unutilized fund as any amount available account in excess of blocked margin for all holding positions on the randomly and arbitrarily chosen specific day by its computer system. (because its staff or trader will never know when his/her turns is going to come) So in other words even if sum of all daily blocked margin amount for the quarter is 50 times your trading account balance, but if you have any excess amount on chosen day, amount will be sent back.

Consider another scenario. You are active trader and you actively buy and sell almost every day.. If your sum of all your daily pay-in and pay-out even for a month is greater than 10 times of your account balance, what do you think is your unutilized fund? As per zerodha, any excess amount on chosen day. period.

active or not, everyone has to worry about settlement to bank account. Intention is good. Implementation is gray..

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