Accounts

Main role

 Maintaining book of accounts

 Funds movement
Fund inflows/ Fund outflows
 Passing ledger entries for purchase and sale of
securities
 Making FAN payments
 Paying staff incentives
 Reconciliation of exchange obligation
Capital /Revenue Expenditure/Income
Modes of receiving client money

 Cheque delivered at HO/ local branches

 Cheques from outstation branches, through
CMS
 Online funds transfer
 Direct deposits by client to our bank account
via cheque
Cash

 As per exchange rules we are not allowed to

accept cash
Cheque

 At HO / Mumbai, local branches Cheques are

deposited in designated account.
 Limits updated after receipt of clear funds.
CMS System

 Deposit cheque in designated account, which is

with HDFC Bank
 HO gets statements from HDFC Bank
 Limits set only after confirmation of clear funds
 Branch intimates HO about deposits by email
 Email should have customer name, login id,
amount, cheque number etc.
Online Fund Transfer

 Gateways with ICICI Bank, HDFC Bank, UTI Bank,

Citibank and Centurion Bank
 By far, widest range of payment gateways with
banks
 Limits updated in real time
Direct deposit by customer

 Here customer has to give us copy of the cheque.

 Customer has to provide copy of bank pass book
or bank statement showing debit of the same to
his account.
 If these two steps are not followed,there will be
difficulties in giving credit to customer.
Pay out of funds

 Pay out requests come from email/phone

calls/online
 Request is noted, processed and the ledger is
modified
 Risk Manager approves the pay out
 Cheque is made and instructions given
 In case of online transfer funds can be transferred
to HDFC, ICICI Bank or UTI Bank
 Normally takes 2 working days
How Payments Are Made

 Payment requests are made through 5paisa

website or phone call to branch/RM/customer care
who in turn log payment request on behalf of client
on wire
 All the payments are processed twice in a day and
sent to risk for approval
 Post approval payments files are generated for
uploading on internet or for cheque printing
Delays

 Client payout request comes before exchange

payout
 Risk related issues - Short sell, Undelivered
shares.
Third Party Cheques

 What are third party cheque?

Debit in account of party ‘A’ if settled by cheque
given by party ‘B’. A broker is not supposed to
accept third party cheques as it violates SEBI
guidelines.
Software Used

 Tradeplus – Accounting Software

 Wire – In house Developed Software For MIS

Client Receipts
How Collections Are Accounted

 Branches collecting cheques have to enter in

wire.Basic details of cheques & alongwith scan
image of cheque
 Scan image is verified and if matched posting is
done
 Online transfer is directly posted
 Those using 5paisa website funds can get
transferred into our account
Bank Reconciliation

 Done On Daily Basis

Exchange Related Transactions

 Payin & Payout Of Exchange Is Done Daily Basis

 Online Margin Requirement Is Monitored & Funded
Accordingly
 Reconciliation Of Exchange Transactions Done On
Daily Basis
Fundflow Monitoring

 Daily Funds Requirement And Arrangement For

Clients & Exchange Is Controlled
 Statements Are Prepared To Monitor Same
Branch Accounting

 Data is entered in in-house accounting software

developed
 Bills are posted and sent to head office for
verification
 Certain payments are made by branch and some
by head office
Other Functions

 Ensure General Ledger Is Updated

 Ensure Statutory Payments Are Made On Time
 Ensure Quarterly Results Are Prepared
 Group Company Reconciliation
 Rent, Franchisee, Salary & Incentives Payments
Processed
Thank You