Important message for stock investors from NSE - What you should know

There is an important update for the investors from the National Stock Exchange (NSE). The NSE has recently tweeted about the frequency of account settlements. The interested individuals can login to the official website of NSE at nseindia.com in case of any details and queries.

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The tweet from the official Twitter handle of NSE said, "The frequency of accounts settlements is really important. Double-check it and make sure it's followed by your stock broker."

The post along with the tweet states, "Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and sends statement of accounts regularly and in any case not later than once in 90 days (or 30 days if you have opted for 30 days settlement)."

It further informs that the claims for a period longer than 90 days will not be accepted by the Exchange in case of default by the broker.

In this regard, an investor must note that in case a client wishes to maintain a running account for its funds with the trading member, the client has to authorize the member in writing to retain its funds, as per the NSE website. Such authorization should also contain:

1) Mandate of the client as to whether the settlement of funds should be done within a gap of 30 / 90 days between two settlements of running account

2) A clause stating that the Client may revoke the authorization at any time (i.e. without notice)

Now, the running account authorisation received through online secured access by way of client specific user ID and password or through a registered email id of client is considered as authorisation in writing.

Accordingly, the actual settlement of funds shall be done by the member at least once within a gap of maximum 30 / 90 days between two settlements of running account as per the preference of the client.