SEBI - Settlement Norms For Inactive Brokerage Accounts

Question 1

SEBI ________ for Inactive Brokerage Accounts

Answer 1

eases Settlement Norms

Question 2

Released on

Answer 2

January 6, 2025

Question 3

SEBI eased settlement norms for brokerage accounts that remain inactive for _______.

Answer 3

over 30 calendar days

Question 4

It will take effect _____, replacing SEBI’s August 2024 circular on the same matter

Answer 4

Immediately

Question 5

Purpose

Answer 5

Aims to reduce procedural inefficiencies for brokers, making the process snoother by eliminating the daily settlement requirement.

Question 6

Previously, brokers were obligated to identify inactive clients and return their funds within ______

Answer 6

3 working days

Question 7

The new SEBI guidelines allow brokers to settle the funds of clients who haven’t traded for _______ on the upcoming settlement dates as per the monthly cycle, specified in stock exchanges’ annual calendars

Answer 7

30 calendar days

Question 8

A brokerage account is considered inactive if the client has not made any trades (buying or selling stocks) for ______ in a row.

Answer 8

30 days