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How are funds debited for SGB orders?

Funds for Sovereign Gold Bonds (SGB) orders are debited from the Zerodha account on the issue's closing day. Available funds include the opening balance for the day and any pay-ins made on the SGB issue's closing day. To learn how to add funds to the Zerodha account, see What are the different ways of transferring funds to the Zerodha account?

The funds for SGB orders will be processed based on the funds available in the trading account.

Example scenario

  1. Mr X placed an order for 3 units of SGB amounting to ₹18000.
  2. Mr X has has ₹13000 in his trading account.
  3. On the issue closing day the funds for 2 SGB units, i.e., ₹12000 will be debited and the order will be processed for 2 units.

If the funds are allocated but used for purchasing other securities and an SGB order is in `placed` status, the SGB order will still be processed, resulting in a negative balance equivalent to the shortfall in the account. A delayed payment charge will apply to this negative balance. To learn more about delayed payment charges, see What does 'Delayed payment charges' entry on the funds statement mean?