Comment on Quarterly settlement of funds & securities

Priya commented on 17 May 2022, 08:42 AM

If I have understood SEBI’s Quarterly Settlement rule correctly, it does NOT apply to accounts having a balance of less than Rs.10,000/-. Also, the rule applies to only those accounts where no trade has taken place in the previous 90 days.

I am purchasing Mutual Funds via SIP for which I transfer funds (Rs.3500/- only) to my Zerodha account *every month*. Since they are SIPs, purchases are happening every month, so my unused fund balance *never* goes above 5000/-.

STILL, my account is settled every quarter and funds are returned to my bank account. This is a NUISANCE. The whole idea of starting an SIP is to have hassle free investment — set up an SIP, set up a corresponding transfer mandate from my bank account, and let the mutual fund investments happen automatically.

But, every quarter, you are returning the money to my bank account — even though the money in my account:
a) Is LESS THAN Rs.10,000/-
b) Is for that month’s Mutual Fund SIPs

This is a NUISANCE because I am afraid that sometime you will transfer the money back to my account and I won’t be able to transfer it back to my Zerodha account on time for the SIP.

My question is: WHY are you transferring money back to my account even though there are Mutual Fund transactions happening every month & my balance is less than Rs.10,000/-???

I think you should change your auto transfer system so that if there are MF SIPs defined, the amount of those SIPs should NOT be transferred!!

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