1. You apply to a Government security at a cut-off price. Cut-off price is the max possible price for a particular Government security
  2. Your application is then placed with the Exchange
  3. On Allotment, you get to know the price at which you got the allotment. This price will remain the same for all the users who applied for the same Government security with you. This price can be equal 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. Government security allotted to you will be transferred to your Demat account with avg price which will be equal to the allotment price.
  6. On maturity, it will be redeemed at the face value which usually is Rs. 100 for all Government securities

Example: You applied for a T-Bill at a cutoff price of ₹100. On 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 Avg price = ₹96