The National Stock Exchange and BSE have said that their respective clearing corporations (CC) have together released funds and Fixed Deposit Receipts (FDRs) of approximately ₹30,173 crore to brokers. This is part of the new rule that came into effect from October 7, which mandated settlement of all the client accounts once each quarter.
In a release, the exchanges said that the settlement of running accounts of client funds was required to be carried out by all the trading members, i.e brokers being the first Friday of the current month/quarter. Based on the information received from the trading members, funds of approximately ₹31,884 crore was released to approximately 1.23 crore clients on account of settlement carried out by trading members and clearing corporations, the release said.
Both the exchanges have said that the settlement process was smooth. However, they have not given a break-up of the amount of cash collateral and non-cash collateral they released to the brokers and how much cash did brokers release to the clients. Going ahead, each quarter both the CCs will release entire collateral to their brokers, who in turn will have to settle all their client accounts on the same day.
Some brokers had started settling client accounts prior to Friday, with cash available with them, to avoid too much stress.