Funds & Tax
Why this page is structured this way: the eight pages in this section follow the money in the order a client experiences it — in, out, charged, shown, taxed — with two pages on what happens to securities rather than cash. The selector below is ordered that way, so a reader who knows which stage of the cycle their question belongs to can go straight to the page without reading the section.
- 8 topic pages plus this overview, covering the client-facing money layer: pay-in, payout, delayed-payment charges, the charge stack, statements, tax reporting, corporate actions, and demat servicing.
- Each page carries its regulatory anchors as circular IDs, a field-level table where a form, file, API or screen exists, alternatives where the industry genuinely differs, and practical notes tagged by type.
- This section is the client-facing counterpart to the broker-side settlement deep-dives. Where a broker-side page already exists, these pages summarise it in a paragraph and link rather than repeat.
- AI-generated synthesis. Verify every rate, threshold and date against the current circular and your own back-office configuration before relying on it.
Page selector
Section titled “Page selector”| Page | The question it answers | Primary regulatory anchors | Read it when |
|---|---|---|---|
| pay-in rails | How does money get into a trading account, and whose money is it allowed to be? | Broker master circular paragraphs 28 and 29; SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/153; NPCI/UPI/OC No. 217/2025-26 | Designing a funding screen, choosing rails, or handling a third-party credit |
| payout and running-account settlement | When must the broker give the money back, and how much may it keep? | Broker master circular paragraphs 23.1 and 48; SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/1; SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2023/197 | Building the quarterly or monthly settlement run, or explaining a retained balance |
| delayed payment charges | What may the broker charge when the client’s money is late? | Broker master circular paragraphs 23.4.4 and 23.4.5; NSE client-fund-balance clarification; HO/38/11/(9)2026-MIRSD-POD/I/15382/2026 | Writing or auditing a DPC policy, or defending a charge in a dispute |
| brokerage and charges | What does a trade actually cost, and who sets each component? | SEBI/HO/MRD/TPD-1/P/CIR/2024/92; SEBI/LAD-NRO/GN/2026/291; Finance Act 2026; Indian Stamp Act Schedule I | Designing a tariff sheet, a pricing plan, or a charges calculator |
| ledger and statements | What can the client see, and on what cadence? | Broker master circular statement and contract-note provisions; depository CAS framework | Specifying client-facing statements, bills, or the funds and holdings views |
| tax reporting | What does the client owe, and what does the broker report? | Income-tax capital-gains provisions; STT framework; SFT and AIS reporting rules | Building a tax P&L, or reconciling a client’s AIS against their trades |
| corporate actions | What happens to holdings when the issuer does something? | Depository corporate-action frameworks; exchange and clearing-corporation event circulars | Handling dividends, bonuses, splits, demergers, rights, buybacks or delisting |
| demat servicing | What happens to the securities themselves, outside a trade? | Depository operating instructions; SEBI depository-participant circulars | Handling dematerialisation, remat, off-market transfers, gifts or freezes |
The first four pages are about cash: what enters the account, what leaves it, what is deducted from it, and what it costs to transact. The middle two are about visibility and obligation: what the client is shown, and what the client and the state each have to reckon with at the end of the year. The last two are about securities: what an issuer’s action does to a holding, and what a client can do to a holding without trading it.
How this section relates to the rest of the site
Section titled “How this section relates to the rest of the site”The site already documents the money layer from the broker’s side. The settlement deep-dives cover client funds and upstreaming, direct payout to demat, pay-in default and the core settlement guarantee fund, the T+0 and T+1 cycles, margin trading facility and securities lending — all from the perspective of a broker meeting obligations to a clearing corporation. This section approaches the same machinery from the client’s side of the counter: what the client sees, chooses, pays, receives and disputes.
That division is deliberate and the pages hold to it. Where a broker-side deep-dive already exists, the client-facing page summarises it in at most a paragraph and links across. The upstreaming architecture is described once, in the client funds and upstreaming deep-dive, and referenced from the payout page rather than restated there.
Four other layers of the site connect to these pages directly.
- What must happen — the Compliance Blueprint lists the verifiable obligations behind these topics: half-yearly SEBI turnover-fee payment, monthly stamp-duty remittance, running-account settlement timeliness, and the reporting returns that aggregate delayed-payment charges.
- Where the data flows — the Field-level Data Flow Atlas carries the field-by-field destinations. Section AC covers the running-account authorisation, Section G the bank master that pay-in reconciliation reads, and the contract-notes destination the charge block that the tariff resolves into.
- What runs before what — the Integration DAG’s EOD and settlement page places charge computation, contract-note generation and pay-in staging in dependency order.
- Who reads what — the Finance and CFO path and the Operations Lead path both route through this section; the charges page is the commercial entry point and the payout page the operational one.
Onboarding-side context sits in the User Journey, particularly Screen 5: Bank Account, where the bank master that everything on the pay-in and payout pages depends on is first captured and verified.
Practical notes
Section titled “Practical notes”- [gotcha] The most common structural error in this area is treating three different client events as one: ordinary settlement after a payout, a voluntary withdrawal request, and mandatory periodic running-account settlement have different triggers and different deadlines. The payout page separates them explicitly.
- [gotcha] Money blocked at a client’s own bank under the UPI-block or qualifying 3-in-1 route is not a broker-held balance. It does not enter the client ledger, the running-account settlement population, or the delayed-payment-charge netting calculation.
- [industry practice] Brokers publish a charges page, a charges calculator and a mandatory tariff sheet. Only the tariff sheet governs, and the three drift apart unless a single effective-dated tariff master feeds all of them.
- [risk trade-off] Every page in this section documents an area where the regulator prescribes disclosure rather than a number. That latitude is commercially useful and shifts the entire burden of justification onto the broker’s own documents — which is why the field tables here emphasise policy version, effective date and computation provenance.
- [cost optimization] For a delivery investor the dominant transaction costs are statutory and cannot be optimised. Cost work in this section pays off mainly in reconciliation effort avoided, not in levies saved.
Verified through
Section titled “Verified through”2026-09-11
AI-generated and not legal, financial, or compliance advice. See the project README for full disclaimer.