Why have I received a withdrawal, when no request was ever made?

If you have received any email regarding the payout transferred back to your primary bank account, it may be because of the quarterly settlement. As per SEBI circular number SEBI/HO/MIRSD/DoP/P/CIR/2022/101, funds in the trading account must be transferred back to the client's bank account once every quarter. This transfer of unused funds to the primary bank account is called quarterly settlement of funds or running account settlement.

At ATS, the settlement happens after considering the End of the day (EOD) obligation of the funds as on the date of settlement across all the exchanges on the first Friday of every quarter for all the clients, i.e., the first Friday of January 2023, April 2023, July 2023 and so on. If the first Friday is a trading holiday, then such settlement shall happen on the previous trading day.

POINTS TO BE NOTED

▪ ATS may retain the funds if, on the date of settlement, the client has an outstanding position, and send out an email with the retention statement.

▪ Client can also opt for monthly settlement, which shall be settled on the first Friday of every month. If the first Friday is a trading holiday, then such settlement shall happen on the previous trading day.