What is a Running Account?
As per SEBI guidelines, funds held in a client's trading account must be settled 1 working day from when a payout is issued (settlement day). This means that sales proceeds will be credited to your bank account after the settlement of every trade. It also necessitates that funds must be transferred to your account for every buy transaction.
A Running Account allows a broker to retain funds in your trading account. SEBI has enforced certain rules for the maintenance of a running account, which mandates a Statutory Payout of available (unutilised) fund balances at least once a calendar quarter. Hence, by giving Geojit a running account authorization:
- You will be able to hold funds in your account without having to make transfers for every trade.
- Available funds will be automatically transferred to your bank account based on the selected payout preference (monthly/quarterly).
This payout policy is applicable to all clients except NRE-PIS customers.Still need help? Create Ticket
