Zerodha logo

Why is the allotment value for my T-bill purchase lesser than the face value of ₹100?

Your T-bill allotment value is lesser because T-bills are issued at a discount to their face value and redeemed at full value upon maturity.

How T-bills work

T-bills do not carry an interest component, which is one of the biggest differences between T-bills and bonds. Instead, T-bills generate returns through the discount pricing mechanism.

Example

The face value (also called par value) is ₹100. This T-bill is issued at a discount to its par value, say ₹97. After 91 days, you will receive ₹100, earning a return of ₹3.

This discount structure explains why your allotment value on Coin appears lesser than the par value of ₹10,000 (or multiples of ₹10,000).

Still need help?

Create a ticket

Open tickets

We see that you have the following ticket(s) open:

If you have the same query, check and update the existing ticket here. In case of a new query, click on Continue.

Continue