1. You apply for a Government security at a cut-off price. (The cut-off price is the maximum possible price for a particular Government security.)

2. Your application is then placed with the Exchange.

3. Upon Allotment, you are informed of the price at which you have been allotted the security. This price will remain the same for all users who applied for the same Government security with you. This price can be equal to or lower than the cut-off price.

4. The remaining amount, i.e., the difference between the cut-off price and the allotment price, is then credited to your Upstox wallet balance within 3 working days.

5. The Government security allotted to you will be transferred to your Demat account with an average price equal to the allotment price.

6. Upon maturity, it will be redeemed at the face value, which is usually ₹100 for all Government securities.

Examples:

• You applied for a T-Bill at a cutoff price of ₹100. On the Allotment date, you discover that the allotment price is ₹96. Upstox will then credit the ₹4 difference to your Upstox wallet within 3 business days. Meanwhile, the T-Bill will only get credited to your Demat account with an average price of ₹96. Upon maturity, you will receive ₹100 for each unit held.

• You applied for a Govt Bond at a cutoff price of ₹105. On the Allotment date, you discover that the allotment price is ₹98. Upstox will then credit the ₹7 difference to your Upstox wallet within 3 business days. Meanwhile, the Govt Bond will only get credited to your Demat account with an average price of ₹98. Upon maturity, you will receive ₹100 for each unit held and receive a certain percentage of interest every six months as notified by the RBI, which usually ranges between 6.5% to 7.5% per annum.