---
title: "Why was an email and SMS sent by the clearing corporation informing about the allocation of funds?"
description: "The clearing corporation sends you notifications about how your funds are allocated across different trading segments as per SEBI guidelines. You don't…"
category: your-arrow-account
subcategory: your-profile
slug: why-was-an-email-and-sms-sent-by-the-clearing-corporation-informing-about-the-al
canonical: https://support.arrow.trade/your-arrow-account/your-profile/why-was-an-email-and-sms-sent-by-the-clearing-corporation-informing-about-the-al/
---

# Why was an email and SMS sent by the clearing corporation informing about the allocation of funds?

> The clearing corporation sends you notifications about how your funds are allocated across different trading segments as per SEBI guidelines. You don't…

## Short answer

The clearing corporation sends you notifications about how your funds are allocated across different trading segments as per SEBI guidelines. You don't need to take any action.

## SEBI requirement for fund allocation

As per SEBI guidelines (WEB), stockbrokers must allocate client funds segment-wise with the Clearing Corporation (CC). This means that the balance maintained with Arrow will be segregated and allocated segment-wise depending on the trades and margin utilisation. The Clearing Corporation (CC) sends emails and SMS to communicate the segment-wise allocation with clients. Clients are not required to take any action.

## How fund allocation works

Your funds get allocated based on your trading activity:

When you trade: If you have ₹1,25,000 with Arrow and purchase stocks worth ₹1,00,000 in the equity segment, iRage allocates ₹20,000 (20% of ₹1,00,000) to the equity segment with the CC. The remaining ₹1,05,000 gets allocated to other segments based on your historical margin usage percentage.

When you don't trade: If you have ₹1,25,000 with Arrow but take no trades in any segment, 100% of your cash margin gets allocated to the equity segment. However, you can still use these funds to trade across all segments.

The clearing corporation then notifies you about the allocation your broker made across different segments.

## Related

- Browse more in [your profile](/your-arrow-account/your-profile/)
- Open account: [kyc.arrow.trade](https://kyc.arrow.trade)
- Trade on Arrow: [app.arrow.trade](https://app.arrow.trade)
- Support: [support@arrow.trade](mailto:support@arrow.trade)

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Source: https://support.arrow.trade/your-arrow-account/your-profile/why-was-an-email-and-sms-sent-by-the-clearing-corporation-informing-about-the-al/
Publisher: Arrow / iRage Broking Services LLP