Funds are debited from the Zerodha account on the last day of the issue for Sovereign Gold Bonds (SGB) orders. The order is rejected if sufficient funds are not available. However, clients can provide consent to use the available funds to place partial orders.

Example scenario

Case 1:

• The available balance in the Zerodha account is ₹10,000. The issue price of an SGB is ₹4,797. An order is placed for 3 units. This order would be rejected if consent was not provided as the required amount is ₹14,391 (₹4,797*3).
  
  
• If consent were provided, an order would be successfully placed for 2 units amounting to ₹9594 (₹4,797*2).
  
  

Case 2:

• The available balance in the Zerodha account is ₹10,000. The issue price of an SGB is ₹4,797. An order is placed for 4 units. Additional funds of ₹5,000 are added to the Zerodha account on the last day of the issue before 3:30 PM. This order would be rejected if consent was not provided as the required amount is ₹19,188 (₹4,797*4).
• If consent were provided, an order would be successfully placed for 3 units amounting to ₹14,391 (₹4,797*3).