Zerodha G-Sec Funds

Reserve blocked basis for G-Sec

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When you bid for a G-Sec / T-Bill / SDL on Zerodha, funds are blocked based on:

Blocked = Face value x Indicative dirty price / 100 + Buffer

A small buffer (typically 0.5% to 1%) is added because the actual cut-off price may exceed the indicative.

Example

Bidding for Rs 1,00,000 face value of 7% G-Sec:

  • Indicative clean price: Rs 100.
  • Accrued interest (4 months from last coupon): Rs 2.33.
  • Indicative dirty price: Rs 102.33.
  • Blocked: Rs 1,02,330 + ~Rs 500 buffer = ~Rs 1,02,800.

After allotment

  • Actual cut-off may be slightly different.
  • Difference (savings) is unblocked.
  • Excess (if any) is debited.
  • Net: Settlement debit = Allotted face x Cut-off dirty price / 100.

See also

External references

References

  1. Zerodha, G-Sec bid mechanics, support.zerodha.com.
  2. RBI, Non-competitive bidding, rbi.org.in.

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