Query on quarterly settlement

Hi @siva @ShubhS9 ,

Can someone answer if I can avoid quarterly settlement in these 3 ways

  1. I buy liquid bees with all my capital and hold overnight. Next day morning if I sell it, a) will that be counted as overnight holding? and b) can I use all money immediately from next day morning?
  2. If I hold ATM options in NRML, will that be counted as overnight position and avoid quarterly settlement?
  3. If I take nifty future long and then go synthetic futures short, ideally I will not get any loss but - a) Can I use all amount when I sell next day morning? B) Also, would this be counted as overnight position?


@ShubhS9 can you please help me with this?

Yes, it’ll be a overnight position. However, the next day when you sell the shares, only 80% of the proceeds will be credited the remaining 20% will be blocked for the day and will be available from next day onwards. More details here.

Hold overnight, right? It’ll be considered as overnight position. Though, if you’re buying options and square-off the next day, the premium received can only be used for buying options, for all other purposes, you can use from next trading day only.

Yes, this will be considered as overnight position and you can use the margins released for other trades.

However, if there is long option position, and you sell it, as explained in point #2, the premium received can only be used for buying options on T-Day, for all other purposes you can use the same only from next trading day onwards.

You’ll have to time this between the quarterly settlement window you see on fund withdrawal page on Console.


@ShubhS9 you are so good, thanks :slight_smile:

Finally one last question. Look at the image below - this is Futures long + Synthetic futures short

Question - Since this is costing 60k per strategy, If I have 6 Lakhs in my account, should I buy 10 sets? Or can I buy 4 or 5 Lakhs worth and still avoid quarterly settlement fully? I ask because in some post I read that for futures, 2.25 times will be considered.

If you’ve open position, funds in excess of 2.25 times the margin blocked can be retained. Any extra funds after applying this rule will be transferred back to your primary bank account. This post explains it in detail.


@ShubhS9 Can you please answer my simple question as well?

I am a positional option seller and almost every day I sell options using 70% of my capital.

I hope I will not face this quarterly settlement, right? Since I sell and hold overnight position every month

secondly, this 2.25 concept is for options selling margin also, right (not just for futures)?

@ShubhS9 can you help please?


Yes, this support article explains it in detail.

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Hi, I was made to believe by Zerodha customer service in the past that: 1) We could initiate the quarterly settlement ourselves by initiating a transfer from our account during the settlement window and it will be treated as settlement process completed. Yet this time around, inspite of me having transferred my cash balance to my primary account, it was again done today…WHY? 2) I was also made to beleive that transfers are now faster and will get processed before 9 am …But that hasnt happened today… This is extremely damaging to algo traders who then see a lot of rejections of orders and breaks the systematic trading routine of your customers. PLEASE FIGURE OUT A WAY TO FIX THIS

Usually quarterly settlement advance mail comes ..will say with in the next 10 days.
always (in the last 7 quarters) settlement was done on a saturday .
This time notice mail came on a monday. I thought i will buy some thing like NIftybee or Bank bee before Friday may be.
Bloody hell with in 2 days of email notice settlement of all un used cash hiit the bank. I prefer not to transfer back same day. But that day I have to send RTGS back as market was volatile & I needed margin.
what happened to the standard procedure of doing Qtrly settlemnt transfer on saturday ??

@ShubhS9 In retention fund statement ,
T day and T-1 day funds pay-in obligation are the values of T day and T-1 day securities purchased .
T day and T-1 day securities pay-in obligation in CM segment are the vales of sold securities .

What is 225% of T day Margin requirement in Equity segment ?
securities purchased + mtm on equity segment ?

as this support article says… broker can retain 2.25 times margin used… anything excess will be credited to our bank account…

Thanks @FancyyCosmonautt , my query is what is margin requirement in equity segment ?


asking about this

@mohitmehra can you,

Not completely sure about this but as per a recent SEBI circular ( SEBI/HO/MIRSD/DOP/P/CIR/2021/577 ) related to quarterly settlements, MTM is excluded when calculating margin requirements -


    5.2. In case of client having any outstanding trade position on the day on which settlement of running account of funds is scheduled, a TM may retain funds calculated in the manner specified below:

    5.2.1. Entire pay-in obligation of funds outstanding at the end of the day on settlement of running account, of T day & T-1 day.

    5.2.2. Margin liability as on the date of settlement of running account, in all segments and additional margins (maximum upto 125% of total margin liability on the day of settlement). The margin liability shall include the end of the day margin requirement excluding the MTM and pay-in obligation, therefore, TM may retain 225% of the total margin liability in all the segments across exchanges. Computation for arriving at retention of excess client funds based on above points would be as under:

    Scenario Fund pay in obligation of T day & T-1 day EOD/peak margin requirement 225% of the margin Securities pledged/repledged Client fund balance Excess client funds retained
    A B C=225%*B D E F=E-[(C-D)+A]
    1 110000 100000 225000 200000 300000 165000
    2 50000 20000 45000 15000 50000 0
    3 150000 100000 225000 280000 ^ 180000 30000

    ^ Excess securities of Rs. 55,000 (i.e. 280000-225000) is not required to be unpledged.

    5.2.3. TM will first adjust the value of securities (after applying appropriate haircut) accepted as collateral from the clients by way of ‘margin pledge’ created in the Depository system for the purpose of margin and value of commodities (after applying appropriate haircut) respectively and thereafter TM shall adjust the client funds.

    5.2.4. It is clarified that the excess securities (in the form of margin pledge) or any cash equivalent collateral identifiable with the client and deposited with CC, after adjustment of the 225% of margin liability need not be unpledged.

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Thanks @Prayag sir .

You can hold your position overnight but you won’t be able to use 100% of the capital the next day because it gets blocked for some time.