Why did I receive a pay-out from Geojit that I did not initiate?
You may receive pay-outs as a result of:
1. Inactive Running Account- If you have not given your broker (Geojit) the authorisation to maintain a running account, sales proceeds are credited to your bank account 1 working day from the applicable settlement day. In other words, these sales proceeds will not be held in your trading account.
For example, if you sell shares on Monday, the pay-out will be credited to your bank account by Wednesday/Thursday (settlement for equity trades is T+1/T+2 days).
Activating the running account facility will enable you to retain funds in your trading account.
2. The Standing Instruction facility- If you have activated the standing instruction facility, clear fund balances available in your trading account is checked at the end of each day, and transferred to your bank account (by the next working day). Here, clear balances imply unutilised and settled funds; pending pay-outs from unsettled trades will not be considered.
For example, you transfer Rs. 10,000 to your trading account on Monday to buy shares worth Rs. 9,000 (inclusive of brokerage). In addition, you also sell shares worth Rs. 15,000. As a result of an active standing instruction, the unutilised amount of Rs. 1,000 (Rs. 10,000 - Rs. 9,000) on Monday will be transferred back to your bank account on Tuesday. The sales proceeds of Rs. 15,000 will be credited to your bank account on Tuesday/Wednesday (settlement for equity trades is T+1/T+2 days).
Please note that the standing instruction facility will be blocked for clients who have authorised the maintenance of a running account.
3. SEBI-mandated Statutory Pay-out- As per SEBI regulations, a statutory pay-out must be issued at least once a calendar quarter for clients maintaining a running account with a broker.
This pay-out is initiated as per the client's selected preference (monthly/quarterly) to the bank account selected in the running account agreement (during account opening).
4. No trades in your account- If you haven't made any trades in your account for 30 consecutive days, any available fund balances held in your trading account will be transferred back to your registered bank account within 3 working days, irrespective of the previous running account settlement date.