As per SEBI regulations, funds in your trading account must be transferred back to your registered bank account at least once every calendar quarter (or every month if you have opted for a monthly settlement). This process is known as Running Account Settlement.

If you have open positions in the market, brokers are allowed to retain up to 225% of the End-of-Day (EOD) margin required for these positions. The retained funds and their details are shared with you in a Retention Statement.

Examples of Running Account Settlement

Summary of the Process

• No Open Positions → The entire trading account balance is transferred to your registered bank account during the monthly/quarterly settlement process.
• With Open Positions → Brokers can retain up to 225% of the EOD margin for open trades and transfer any excess funds to your bank account.

This ensures compliance with SEBI guidelines while maintaining adequate margins for ongoing trades.