What is a Statutory Pay-out?
SEBI's Settlement of Running Account of Client's Funds regulation requires brokers to settle fund balances of clients with active running accounts at least once a calendar quarter.
In accordance with this, any funds held in a client's trading account will be transferred to their registered bank account as per the pay-out frequency preference (monthly/quarterly) selected in the running account agreement. In addition, if a client hasn't made any trades in 30 days, the available fund balance held in their trading account is transferred back to their registered bank account, irrespective of the previous running account settlement date.
In case of any outstanding trade positions on the running account settlement day, brokers are permitted to retain funds up to a certain limit, as prescribed by SEBI, and issue a Retention Statement to clients.
Read more about the Statutory Pay-out Policy followed by Geojit.
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