4.6How to add money to a trading account
1What is it?
You transfer money from your linked bank account to your broker using UPI, net banking or bank transfer. It shows up as available funds or margin.
2Why does it exist?
You need funds in the trading account before buying.
3Stock market example
Many brokers also support UPI block (ASBA-style) where money stays in your bank but is blocked until used. Unused funds are periodically returned to your bank by SEBI’s running account settlement rule.
4Risks
- Only add money from your own linked bank account.
- Never pay to an individual for "account handling".
5Quick revision
- Use UPI or net banking from your own bank.
- Funds appear as available margin.
- Unused funds are periodically settled back to you.
6Knowledge check
Q1. Can you add money via UPI?Show answer
Yes.
Q2. What happens to unused funds lying with a broker for long?Show answer
They are returned to your bank under periodic running account settlement.
Q3. Should you transfer money to a broker employee’s personal UPI?Show answer
Never.
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