Practicing Success
Practicing Success
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What happens to the blocked amount if the investor is allotted securities? |
The amount is refunded to the investor's account The amount remains blocked until maturity of the securities The bank debits the account for the amount payable on allotted securities and removes the lien The bank debits the account for the entire application amount |
The bank debits the account for the amount payable on allotted securities and removes the lien |
If the investor is allotted securities, the bank debits the account only for the amount required to pay for those securities. The lien on the reserved funds is removed, and the remaining balance is available for the investor's use. This process ensures that the investor's account is accurately debited based on the actual securities allocation and payment required while releasing any unnecessary hold on the funds. |
