Listing day is the first day the new shares trade on the exchange. For a public issue under the current rule, that day is T+3. T is the day the issue closes. SEBI’s circular of 9 August 2023 cut the gap from six working days to three. It has been mandatory for issues opening on or after 1 December 2023. A market holiday is not counted, so a holiday between the close and the list date pushes listing out.
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Capital Gains Calculator
Tax on shares, equity funds, debt funds, property and gold for one sale.
Open calculatorThe days before it are spoken. Rejections and the basis of allotment are finished before 6 pm on T+1. The exchange approves the basis before 9 pm on T+1. Shares are credited before 6 pm on T+2. Unused application money is unblocked before 4 pm on T+2. Listing morning should already show the shares in the demat account if you were allotted. The status guide is how you check that the night before.
You can sell on listing day. The trade is an ordinary sale. The cost is the issue price the bank debited, which is the price discovered in the band, or the fixed price in the offer document. A price discussed off the exchange is not that cost. This site does not print a grey market premium.
The tax follows the holding period, not the excitement of the first trade. Allotment is not a tax event. A sale on listing day has a holding period of a few days, which is not more than 12 months, so the gain is short-term. Section 196 (this was Section 111A) taxes that listed-equity gain at the short-term rate. Hold past 12 months and Section 198 (this was Section 112A) applies to the gain above ₹1,25,000 in the year. The capital gains guide has the workings. Tax on IPO listing gains gets its own guide. The capital gains calculator uses your sale price and your cost.
Before you place the sell order
Confirm the credit. An order in a stock that is not yet in the account will not fill. Confirm the quantity. Retail allotment in a crowded issue is often one minimum lot, even if the bid was larger. The allotment guide explains that draw. Confirm you are allowed to sell. An employee reservation or a lock-in in the offer document can stop a sale that the trading screen would otherwise take.
A monthly purchase, instead of one listing-day bet, is a SIP. The SIP calculator does not know the issue price. It also does not know listing day.
Questions
When do IPO shares list?
Trading starts on T+3. T is the closing day. The rule has been mandatory for issues opening on or after 1 December 2023.
Can I sell on listing day?
Yes, once trading has started and the shares are in the demat account. The credit is due before listing. A sale that day is a market trade.
Is the gain on listing day taxed as long-term?
No. The shares have been held for not more than 12 months, so the gain is short-term. Section 196 (this was Section 111A) is the section. Tax on IPO listing gains gets its own guide.
Sources
Figures checked 1 Nov 2026.