Settlement of Running Account and Regulator-mandated Investor Awareness Communication

Pursuant to NSE Circular NSE/INSP/49434 dated Aug 27, 2021, regarding Creating Investor Awareness and Safeguarding Clients’ Assets, we request you to note the following:

  • As per the existing requirements, Sharekhan is settling your account at least once within a gap of maximum 30/90 days between two settlements of running account depending on the preference set by you.
  • SEBI vide Circular SEBI/HO/MIRSD/DOP/P/CIR/2021/577 dated June 16, 2021, has revised the guidelines on settlement of running account of client’s funds lying with the trading members and also mandated to return the credit balances of clients within three working days in case the client has not done any transaction within 30 calendar days, effective Aug 1, 2021.
  • Customers are requested to abstain from dealing in any schemes of unauthorised collective investments / portfolio management, indicative / guaranteed / fixed returns / payments and others.

Additionally, attention is also drawn towards the following NSE-issued Advisory for Investors (printed verbatim here):

Attention Investors!

  • Beware of fixed / guaranteed / regular returns / capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed / guaranteed / regular returns / capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
  • Please note that your stock broker has to return the credit balance lying with them within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the Exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.
  • Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section.
  • Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/collateral MUST remain in the account of the client and can be pledged to the broker only by way of Margin Pledging, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.
  • Always keep your contact details (that is, mobile number and email ID) updated with the stock broker. Email ID and mobile number are mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker / Exchange if you are not receiving the messages from Exchange/Depositories regularly.
  • Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the contract notes / statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately. If the stock broker does not respond, please take this up with the Exchange/Depositories forthwith.
  • Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.
  • Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI-registered stock broker.
sharekhan contact Full Service Broking: know more

Registered Office: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400042, Maharashtra. Tel:022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos.: BSE / NSE / MSEI (CASH / F&O / CD) / MCX - Commodity: INZ000171337; DP: NSDL/CDSL-IN-DP-365-2018; PMS: INP000005786; Mutual Fund: ARN 20669; Research Analyst: INH000006183; For any complaints email at [email protected].

Compliance Officer: Mr. Joby John Meledan; email id: [email protected];Tel: 022-61150000.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do’s and Dont’s issued by Stock Exchanges and Depositories before trading on the Stock Exchanges.

Mutual Fund investment are subject to market risk. Read all the scheme related documents carefully before investing. For more details click here

Join us on