Zerodha SGB Funds

How funds are debited for SGB orders

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Funds debit for SGB orders differs between primary tranche and secondary market:

Primary tranche

  1. Bid placement: Funds blocked in Zerodha trading balance (issue price x quantity x grams, minus online rebate).
  2. Allotment day: Blocked funds debited to RBI; SGB units credited to demat.
  3. Refund (if any): Excess returned to trading balance.

Secondary market

  1. Buy order: Like equity; funds blocked at limit price x quantity.
  2. Execution: Debited on trade confirmation.
  3. Settlement: T+1 demat credit.

Online rebate (primary only)

Online subscribers (via brokers like Zerodha) get Rs 50/g discount on the issue price. So if issue price is Rs 6,000/g, online debit is Rs 5,950/g.

See also

External references

References

  1. RBI, Sovereign Gold Bond Scheme, rbi.org.in.
  2. Zerodha, SGB online rebate, support.zerodha.com.

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