In India, an IPO’s allotment, demat credit and listing are separate steps. Under the current public-issue schedule, allotment processing is usually on the first working day after the issue closes (T+1), depository credit is confirmed on T+2, and listing is scheduled for T+3. You can sell only after trading begins on listing day and the allotted shares are credited to your demat account.
Allotment, demat credit and listing are different milestones
Allotment determines how many shares, if any, an applicant receives. Demat credit is the electronic posting of those shares to the investor’s demat account. Listing is when the exchange admits the shares to trading. An allotment result or a credit notification does not, by itself, mean the shares can already be sold.
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| Milestone | Usual position in the current schedule | What it means for selling |
|---|---|---|
| Basis of allotment | T+1: the designated exchange carries out basis-of-allotment processing, according to the NSE process page. | Does not permit a sale; the shares are not yet listed for trading. |
| Depository credit confirmation | T+2: the issuer submits confirmation, according to the NSE process page. | Credit is a necessary condition, but trading must also have begun after listing. |
| Listing and trading | T+3: listing is scheduled for this milestone in the NSE process page. | You may place a sell order once the exchange has started trading the stock and the allotted shares are credited to your demat account. |
Here, T is the working day the issue closes. SEBI reduced the public-issue listing timeline from T+6 to T+3 working days in its August 9, 2023 circular. SEBI’s February 2026 consolidated ICDR material states that T+3 is mandatory for public issues opening on or after December 1, 2023.
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You can sell after the stock is listed and exchange trading has begun, provided the allotted shares are credited to your demat account. The NSE investor FAQ gives the same prerequisite: “You can trade in new shares after they are listed and after ensuring that the allotted shares have been credited into your Demat Account.” The FAQ also says off-market transfers cannot be made before listing. Its separate answer giving an older T+6 listing deadline is outdated; the current timeline is the SEBI T+3 framework.
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In practical terms, an allotment result, a promised listing date or a demat-credit alert alone is not enough. Wait until the exchange opens trading in the newly listed stock and confirm the shares are visible in your demat account before placing a sell order.
How to read the dates for a specific IPO
T+1, T+2 and T+3 are working-day milestones, not guaranteed calendar-day intervals. Weekends and exchange holidays affect the calendar dates, and the final listing and trading approvals are also required. The NSE process page describes the standard sequence, while the particular issue’s timetable and exchange notices determine its actual dates.
- Check the IPO’s offer documents and published timetable for its issue close and expected milestones.
- Use the issue registrar’s status page to check the allotment result and relevant processing updates.
- Check the exchange notice for the confirmed listing and trading date before planning a sale.
What to do if allotted shares are not in your demat account
The NSE investor FAQ identifies several possible causes of a missing credit: the demat account is inactive or barred from receiving credits, the account details do not match, or the demat account number in the bid file is incorrect.
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- Compare the demat account details in your IPO application with the account information held by your depository participant.
- If the shares remain missing, contact the issue registrar and provide the account documentation it requests.
Until the shares appear in the demat account and trading has begun after listing, you cannot sell the allotment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happens to the application money?
Share credit and application funds are separate processes. Under ASBA, the application amount is blocked in your bank account while allotment is pending. If shares are allotted, the amount due is debited; if none are allotted, the blocked funds are released, so no refund is needed. SEBI’s investor page explains how to apply in an IPO through ASBA and notes UPI as another available IPO payment mechanism.
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