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SEBI Eases Settlement Norms for Inactive Brokerage Accounts.

Banking & Finance | Dated: 09 Jan 2025

On January 06, 2025, the Securities and Exchange Board of India (SEBI) eased settlement norms for brokerage accounts that remain inactive for over 30 calendar days. This change takes effect immediately and replaces SEBI's August 2024 circular on the same issue.

🎯 Key Highlights:

  • - The modification aims to reduce procedural inefficiencies for brokers, simplifying the process by eliminating the daily settlement requirement.
  • - Previously, brokers were required to identify inactive clients and return their funds within 3 working days.

💡 Other Important Facts:

  • (i) Under the new SEBI guidelines, brokers can settle the funds of clients who haven't traded for 30 calendar days on the upcoming settlement dates, as per the monthly cycle specified in stock exchanges' annual calendars.
  • (ii) A brokerage account is considered inactive if the client has not made any trades (buying or selling stocks) for 30 days in a row.

📚 Test Your Knowledge:

Recently, SEBI eased settlement norms for which type of accounts?

Correct Answer: Brokerage accounts

🚀 Quick Recap:

About SEBI

  • Chairperson : Madhabi Puri Buch
  • Headquarter : Mumbai