What if the payment for the securities is made to the bank/PD after the date of issue of the security ?
Since the bank/PD has to make payment on the date of issue itself, in case payment is made by the client after date of issue of the security, the consideration amount payable by the client to the bank or the PD would include accrued interest. For example, if for security 7.59% GOI 2016, the payment is made three days after the date of issue, the accrued interest component will amount to (7.59/100) x (3/360) = Rs.0.0632 per Rs.100 face value.For example, if the weighted average price is Rs.100.21, the total amount payable by the investor for acquiring securities worth Rs.10,000 after three days will be Rs. 10, 021 + Rs. 6.32 = Rs.10, 027.32 (if not rounded off) .
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