what is quarterly settlement in zerodha

Quarterly settlement in Zerodha refers to the transfer of unused funds from a clients trading account back to their primary bank account once every quarter, as per SEBIs circular. At Zerodha, the settlement happens on the first Friday of the quarter, i.e., the first Friday of January, April, July, and October. If the first Friday is a trading holiday, the settlement will happen on the previous trading day. However, funds are transferred back to the primary bank account once a month if the client is inactive for 30 calendar days. The settlements are done separately for Equity & Commodity segments. The settlement cycle for all traded instruments on Indian exchanges is T+1 day, with T being the trade day.