What does it mean to settle funds with your broker monthly/quarterly? Received an SMS from NSE.

[ShubhS9]

Periodic settlement of funds is carried out to stop misuse of clients funds and to safeguard interests of retail Investors/Traders.

You can read this post, it has been explained in detail there.

What is quarterly settlement? Why do brokers do this for active traders?

Dear Nagaraju, Settlement of Funds & Securities through Quarterly Settlement is an initiative by SEBI to ensure brokers do not misuse funds and/or securities kept with him. Assume you’d kept Rs.25,000 with your broker and not traded for more than a year. There are chances that some brokers may start utilizing these funds by trading on your account, resulting in brokerage revenue for themselves. One fine day you realize that all of the 25,000 you had kept is gone either as trading losses or as …