If you have ever logged into your trading account and noticed funds being credited back to your bank without initiating a withdrawal, you might have wondered what triggered it. This is where the monthly and quarterly payouts come into play. While it may seem technical at first, the concept is actually quite simple and designed to protect you as an investor.<\/p>\n
In this guide, we break down how the settlement process works, including both monthly settlement and quarterly settlement rules, explain key concepts like running account authorization, and highlight important settlement dates and payout timelines you should keep in mind. Whether you\u2019re a beginner or an active trader, understanding how unused funds are settled by stock brokers can help you manage your trading balance more effectively.<\/span><\/p>\n The settlement cycle was introduced by the Securities and Exchange Board of India in 2009 to ensure investor funds are not held indefinitely by brokers.<\/span><\/p>\n As per updated guidelines effective 01 October 2022, brokers must transfer unused funds back to your bank account:<\/span><\/p>\nWhat Is Settlement Cycle?<\/b><\/h2>\n
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