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In a follow-on public offer (FPO), your application money is normally blocked in your bank account rather than transferred immediately. After the basis of allotment is finalized, the amount for shares actually allotted is debited and any excess is released. If you receive shares, they are credited to your demat account, but you can trade only after the stock exchange grants final listing and trading approval.
Because no particular FPO is identified here, exact allotment, unblocking and listing dates cannot be stated in advance. Use that issue’s offer document, registrar notices and exchange announcements for the calendar, and use the process below to interpret what you see in your bank, UPI and demat accounts.
How FPO application money is handled
FPO applications in India generally use ASBA (Application Supported by Blocked Amount) or the UPI version of ASBA. The key distinction from an ordinary payment is that the application amount is placed on hold, not permanently removed from your account at the time of bidding. SEBI Investor explains: “In ASBA, money to the extent of price of the shares for which the investor has applied, is blocked, but it remains in their account till allotment.”
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Your self-certified syndicate bank (SCSB) places a lien or block for the amount required by your application. You continue to see the funds in the account balance, but the blocked portion cannot be spent while the issue is being processed. Once the basis of allotment is approved, the SCSB debits only the amount payable for the shares allotted. If you receive no shares, the block is released instead of a conventional cheque-style refund.
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UPI-supported ASBA
With UPI, you submit the bid and authorize a mandate for the application amount in your UPI app. The sequence is block, allotment, debit of the allotted amount and release of the balance. SEBI Investor states: “Once the shares are allocated, the process of debiting of funds from investors account would take place and excess money would be unblocked.”
Use a bank account and UPI ID held in the applicant’s own name. SEBI says third-party UPI IDs or bank accounts are not considered for allocation. A retail individual investor’s UPI application limit is ₹5 lakh per transaction, according to the SEBI Investor page accessed in 2026. A bank or payment app can impose operational limits or require a fresh mandate authorization even when the issue’s rules permit the application.
The FPO timeline: bid close to first trading day
The dates below describe the normal sequence, not a universal calendar. An FPO’s offer document and the notices issued by its registrar and exchange control the actual dates.
| Stage | What happens | What you should check |
|---|---|---|
| Bid period | You place a bid for a price or within the price band and authorize ASBA or UPI blocking. | Bid quantity, final price choice, application number and mandate status. |
| Issue closes | Applications stop being accepted at the stated closing time. The issuer and intermediaries reconcile bids. | The offer document’s closing date and any permitted revision or withdrawal window. |
| Basis of allotment | The designated stock exchange, lead managers and registrar finalize how many shares each category receives. | The registrar’s allotment result and the exchange-linked notice for that FPO. |
| Debit or unblocking | The amount for allotted shares is debited; money for unallotted shares and excess application money is released. | Your bank statement, available balance and UPI mandate status. |
| Demat credit | Allotted shares are credited in electronic form to the demat account specified in the application. | ISIN, credited quantity and the demat account used for the bid. |
| Listing and trading | Trading starts only after the exchange gives final listing and trading approval. | The exchange notice and the named FPO’s confirmed listing date. |
The exact number of working days between these steps is issue-specific. Do not use the timetable of a previous FPO as a prediction for a new one.
How the basis of allotment determines your shares
Allotment is not simply “first come, first served.” After bids are validated, the registrar works with the lead managers and designated stock exchange to finalize a basis of allotment for each investor category. The rules in the offer document govern the available portion, minimum bid lot and treatment of oversubscription.
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Retail oversubscription
When the retail portion receives more valid applications than the shares reserved for it, the category may not be able to give every applicant the quantity requested. Retail investors are considered against the minimum bid lot and category availability. Remaining shares can then be distributed proportionately under the approved basis.
Why you may receive one lot
If demand is very high, the mechanism can result in many successful applicants receiving only the minimum lot, while others receive nothing. A one-lot result does not mean the bank or registrar reduced your application arbitrarily; it reflects the approved category calculation. The final result is the quantity shown in the registrar’s status record, not the quantity originally requested.
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An application may be valid but unsuccessful because the category is oversubscribed, or it may be rejected under the issue’s eligibility and bid-validation rules. In either case, the blocked amount should be released after the basis is finalized, subject to the timing requirements described below. A rejected or unsuccessful application is not converted into a partial allotment merely because funds were available.
How to check your FPO allotment
Use the registrar and exchange-linked status route named in the FPO’s offer document. The interface and fields vary by issue, but the verification sequence is consistent:
- Open the allotment-status page identified in the FPO offer document or the registrar’s official notice.
- Select the relevant issue name, then enter the requested identifier, such as application number, PAN or demat details. Use the same information submitted with the bid.
- Save the displayed result, including allotted quantity, application status and any reference number. A screenshot is useful if a bank or intermediary later asks for evidence.
- Cross-check the quantity against the debit in your bank or UPI app and against the demat account after the credit window.
A status page may update before your bank app, or your bank may show a debit before the demat credit is visible. Those systems do not always refresh simultaneously. If the registrar’s result and your account records conflict, quote the application number and mandate reference when contacting support.
When blocked money should be released
For an application that receives no shares, the entire blocked amount should be released. For a partial allotment, the amount corresponding to the allotted shares is debited and the remainder is unblocked. The release is an electronic removal of the hold; it is not a separate refund transfer that must arrive in a different bank account.
Next-working-day expectation
The cited SEBI provisions require SCSBs to complete unblocking for non-allotted or partially allotted UPI applications by the close of the next working day after the basis of allotment is finalized. This requirement concerns the bank or SCSB’s release action. Your app’s displayed available balance can update later because of bank processing or a delayed UPI-status refresh.
Compensation for a qualifying delay
The SEBI-filed public-offer provisions from 2024 specify compensation of ₹100 per day or 15% per annum of the bid amount, whichever is higher, for delayed unblocking of non-allotted or partially allotted applications, where the provision applies. A separate SEBI-filed offer document notes that a delay exceeding four working days from bid or offer closing can trigger compensation under applicable law. Whether compensation is payable in your case depends on the issue, the cause of delay and the governing provisions; retain records rather than assuming every slow app update qualifies.
What to do if a UPI mandate is still blocked
Work through the parties in the order that can actually release or investigate the hold. Do not create a second application merely because the first mandate remains visible.
- Confirm the result. Check the registrar’s allotment page first. A partial allotment explains why one portion was debited and the remainder should be released; a no-allotment result means the full block should be removed.
- Check the UPI app and bank ledger. Record the mandate ID, block amount, authorization time, debit or release entry and the available balance. A mandate marked “completed,” “revoked” or “expired” can display differently across apps.
- Contact the SCSB or bank. Give the application number, PAN or demat identifier used, UPI mandate ID and the basis-of-allotment date. Ask specifically whether the ASBA lien has been released, not merely whether a refund was sent.
- Contact the registrar and issuer compliance officer. If the bank cannot locate the instruction, provide the bank’s response and your saved screenshots. The registrar can verify the allotment file and coordinate with the intermediary.
- Escalate with a complete record. Keep call references, emails, timestamps, statements and screenshots. These establish when the block should have been removed and support any complaint or compensation request available under the issue’s rules.
Never share a UPI PIN, one-time password or full banking credentials with a caller claiming to be an FPO intermediary. Legitimate troubleshooting needs transaction references, not your authentication secrets.
Demat credit: what “allotted” means
An allotment result confirms the quantity assigned to you; it does not necessarily mean the shares are already visible in your portfolio at that instant. The shares are credited in dematerialized form to the demat account specified in the application. Check the credited quantity and the issue’s ISIN in your depository participant or broker statement.
If the registrar shows an allotment but the quantity is missing after the credit window stated in the offer documents, contact the registrar and your depository participant together. Ask the registrar to verify the demat account number submitted with the bid and ask the participant to check inbound corporate-action credit. Do not sell based only on an allotment SMS or status-page message.
When FPO shares can be sold
Trading begins only after the stock exchange grants final listing and trading approval. An allotment notice, demat credit or a proposed listing date is not itself permission to place a sell order. The confirmed date must come from the FPO’s offer document, the registrar’s communication and the exchange’s final notice.
Once trading is approved and the shares are credited, normal exchange and broker controls apply, including the applicable settlement cycle, order types, price bands and any risk disclosures shown by your broker. If the exchange has not issued final approval, an order may be rejected even though your demat balance already shows the securities.
How to compare two FPOs before applying
Comparing only the headline price or subscription figure can hide differences that affect your cash and timing. Use the same checklist for each issue:
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| Comparison point | Questions to answer from the issue documents |
|---|---|
| Bid timetable | What are the opening, closing, revision, withdrawal, basis and proposed listing dates, and which are subject to change? |
| Price and lot | What is the price band or fixed price, the minimum bid lot and the total amount blocked for one lot? |
| Category allocation | How many shares are reserved for retail and other categories, and how will oversubscription be handled? |
| Status route | Which registrar hosts the allotment page, and what application, PAN or demat details are required? |
| Unblocking terms | Which SCSB or UPI process applies, and what dates or service standards are stated for release of excess funds? |
| Demat timing | When does the document expect electronic credit, and what should you do if the credit is missing? |
| Listing approval | Which exchange will issue the final listing and trading approval, and where will that notice appear? |
| Grievance contacts | What are the registrar, issuer compliance officer and intermediary contact details for a blocked mandate or quantity dispute? |
For any cell where the issue documents do not provide a firm value, treat it as “not stated” rather than filling the gap with a date from another FPO.
Common situations and the right interpretation
My application says “not allotted,” but the money is still visible in my balance
Visible money is not necessarily spendable money. Check whether the bank still shows an ASBA lien or the UPI app still shows an active block. The SCSB remains responsible for the release within the applicable service window.
I received fewer shares than I requested
This is consistent with a partial allotment when the category is oversubscribed. Verify the quantity on the registrar’s basis result, then expect a debit only for that quantity and release of the excess block.
The bank debited me, but the shares are not in my demat account
Keep the debit confirmation and check whether the stated demat-credit date has passed. Ask the registrar to confirm the account details and the depository participant to trace the corporate-action credit.
The shares are credited, but my sell order is rejected
Check whether the exchange has issued final listing and trading approval and whether the announced first trading day has begun. A credit before approval does not authorize trading.
Records worth keeping until the issue is settled
- Application number, bid quantity, price and category.
- UPI mandate ID or ASBA reference and authorization timestamp.
- Basis-of-allotment result and registrar correspondence.
- Bank statement showing the block, debit or release.
- Demat statement showing the credited ISIN and quantity.
- Exchange listing notice and any complaint reference numbers.
These records let the bank, registrar, issuer and exchange trace the same transaction instead of treating a missing release or credit as an unverified account query.
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