Why am I receiving the sms and email from the exchange regarding the allocation of the cash component? Do I have to do something about it?

According to SEBI guidelines, the clearing corporation must send an email and sms in order to be compliant. SEBI also mandates every broker to allocate funds (segment-wise) with a clearing corporation. This means the fund balance maintained by ATS will then get segregated and allocated segment-wise depending upon the trades. Brokers need to do the allocation on a daily basis. The client does not need to take any action regarding these sms. The clearing corporation just sends these sms in order to inform clients about their segment-wise allocation. It does not affect the cash margin available to the client in anyway.

Sample notification that the client receives by clearing corporation for the allocation of funds made by the broker.