Comment on Quarterly settlement of funds & securities

Shruthi R commented on 17 May 2022, 01:08 PM

Hey Priya, the quarterly settlement is a regulatory requirement. To Fund your SIP, you can always add funds on the SIP due date before the cut-off time. Also, SEBI brought about some changes to the way the settlement of funds needs to be done. This circular has all the details. Highlighting the salient changes here:

a. Earlier, we would retain funds if the balance was below Rs.10,000. This is done away with, no more retaining any funds. So you will receive credits less than 10k as part of quarterly settlement payout.

b. Payout of funds in case of inactivity for 30 days (Clause 5.4) of the circular: Earlier, funds would be settled on a quarterly (90 days) basis. The new rules now require us to payout credit balance even if there have been no trades for 30 days.

Also, from 1st July, funds for your mutual fund investments will be directly debited from your primary bank account, so you don’t have to worry about it anymore. Sorry for the inconvenience.

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