How to avoid Quarterly Settlement as a trader?

General
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Hi Traders,

How do you avoid quarterly settlement ?

From this post, i understand it is mandated by SEBI.

It is an inconvenience to transfer money from bank account to trading account.

Is there any way to avoid it ?

Also, What is the reason for quarterly settlement ?
I do not see a convincing reason for this ritual as a trader/account holder…

Thanks in advance.

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This is done so that the broker doesnt use the funds to trade in his account. It is an initiative by SEBI to protect the interests of investors and traders.

I understand your concern I too feel that that there should be an option for a client to select this option

There can be a some sort of a pop up that can be raised for the client as on a particular date(quarterly settlement date) incase client selects NO it should be retained and if YES or no response it can be transferred to bank account.

@Zerodha-Staff @Meher_Smaran is there something like this you can recommend SEBI?

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@JuhiMahiwal There’s currently no provision to retain funds, even with a consent. This is something that has come up often in discussions within the broker and trader community. That said, it’s a regulatory call.

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I usually buy Liquidcase/liquidbees to avoid this and sell after 2 days. It earns some interest and no market risks.

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