I have Demat account in ICICI direct. They have started scheme of Upstream .
Up Streaming of funds means debiting the peak margin (Highest margin created anytime during the day) and pay-in obligation from client’s account and upstream the funds to Clearing Corporations (CC). The movement of fund would be customer depositing funds in ICICI Up Streaming Client Nodal Bank Account- USCNBA), from their money will move to Broker’s Settlement account and then to Clearing Corporation. That means, the funds will be debited from the clients account and same will be Up Streamed on the same day to Clearing Corporation within the given cut off time. The Cut-off time given by CC for the same is 7.00 PM.
This means ICICI direct will block money for any Buy order with target price if NOT executed for one Night for weekdays and 2 days for weekend days.
As I understand, this scheme is only for ICICI direct and Not for other brokers.
Following is SEBI circular.
V. Upstreaming of funds: Funds received on a given day by SBs shall be transferred to CMs, and by CMs to the CC any time during the day, but not later than the respective cutoff times. The respective cutoff times for upstreaming are as follow: Sr. No. Particular Cutoff time 1 CM upstreaming cutoff time To be decided by CC – not earlier than 6:00 PM 2 SB upstreaming cutoff time To be decided by CM – not earlier than 1 hour prior to CM upstreaming cutoff time
Read more at: SEBI Circular: Upstreaming Clients’ Funds – Implications & Guidelines
Ultimately this is client money and what is right to ICICI direct to block money. Is it legal and SEBI approved?
Request your opinion from seniors whether this is OK
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