Refund unblocking is the release of money a bank blocked for an IPO. ASBA, and a UPI mandate used as ASBA, never takes the money on the day you bid. The bank marks a hold for the bid amount. The debit happens only for shares that are allotted. Everything else is unblocked. People still say “refund”. On this system there is often nothing to refund, because the money did not leave.
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Open calculatorThe clock is the T+3 annexure. T is the day the issue closes. Fund transfer for allotted shares is completed before 2 pm on T+2. Unblocking of the rest is completed before 4 pm on T+2. If you were allotted nothing, the whole block should lift by then. If you were allotted fewer shares than you bid, only the allotted amount is debited. The same is true when the discovered price is below the cap you were blocked at.
You see the release in the UPI app, as a mandate that is revoked or executed, or as a lien that disappears on the bank statement. The registrar’s status page is still the document that says why. A revoked mandate with “not allotted” is the normal end of a lost draw. A revoked mandate with “rejected” means the form never entered the draw. A mandate that is still blocked on listing morning is the late case.
SEBI’s circular SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M of 16 March 2021 sets the compensation for a late unblock. It has applied to issues opening on or after 1 May 2021. The self-certified syndicate bank pays ₹100 a day, or 15% a year of the application amount, whichever is higher. The circular of 9 August 2023 says that count now starts on T+3. If the complaint is still open after the day it is received, the post-issue lead manager pays the same daily rate for the further days, on top of the bank’s amount.
Ask the registrar first if you cannot tell allotment from a rejection. Ask the bank if the status is clear and the money is still held. The bank should reply within 15 days on a form you filled correctly. SEBI SCORES is the step after that. The status guide puts the same steps in order.
What this is not
The release is not interest the company pays you for a lost draw. The blocked balance stayed in your account. It is also not a grey market settlement. This site does not print an off-exchange premium, and the compensation formula does not use one. It uses the application amount and the days of delay.
A sale after listing is a different movement of money. That debit and credit are a market trade. The capital gains calculator is for the tax on that sale. Unblocking the unused bid is not that tax.
Questions
When should the blocked IPO money come back?
On the current timetable, unblocking is completed before 4 pm on T+2. Shares are credited before 6 pm on T+2. Listing is T+3.
Do I get the full amount back if I was partly allotted?
No. The bank debits the allotted shares and releases the rest. A lower issue price than the cap you were blocked at works the same way. Only the difference comes back.
What is the compensation if the release is late?
SEBI’s circular of 16 March 2021 sets ₹100 a day, or 15% a year of the application amount, whichever is higher. The T+3 circular counts that delay from T+3.
Sources
Figures checked 1 Nov 2026.