IPO Money Blocked Not Refunded? Timelines and Compensation

"I didn't get the IPO shares, the result came out two days ago, but my bank still shows the amount on hold." Under SEBI's T+3 timeline, blocked money for bids that were not allotted should be released by T+2 working days. If it is still blocked after that, complain to your bank (the SCSB) with the application number, and claim compensation of ₹100 a day or 15% a year on the amount, whichever is higher, for the delay.

Because IPO money is blocked rather than debited, "refund" usually means "unblock". Most delays clear within a day, but you have defined rights if they do not. This guide covers the timelines as of October 2026, the fix steps and the escalation route. If you have not yet checked the result, start with how to check IPO allotment status.

Why money stays blocked

When you approve a UPI mandate or an ASBA request, your bank places a lien on the bid amount. After allotment, the sponsor bank sends a revoke or debit instruction for each application:

• Not allotted: full revoke, so the whole amount is freed.
• Partly allotted: debit for the allotted shares, revoke for the rest.
• Rejected or invalid bid: full revoke.

Delays happen when:

1. The revoke file from the sponsor bank fails for some applications.
2. Your bank (SCSB) receives the instruction but does not process it in time.
3. The block was placed through a different account than expected (for example, net banking ASBA with a second account).
4. The app shows an old "hold" while the available balance is already restored.
5. A public holiday falls between T and T+2, pushing working-day deadlines out.

Timeline you are owed (as of October 2026)

SEBI's investor compensation framework (first set out in its March 2021 circular on streamlining UPI-based IPOs, and carried into the General Information Document attached to offer documents) says the responsible intermediary must pay ₹100 per day or 15% a year on the bid amount, whichever is higher. In recent offer documents, this applies where unblocking takes longer than two working days from the bid closing date. The issue's own RHP and GID state the exact wording, so check them; the post-issue lead manager fixes which intermediary pays.

Step-by-step fix

Check first

1. Confirm the allotment result on the registrar's site or the exchange status page. "Not allotted" or "partly allotted" means a release is due.
2. Check your available balance, not just the "hold" line. Some apps show cleared holds for a while.
3. Find the right account. UPI bids block the account linked to that UPI ID; ASBA bids block the account you chose in net banking.
4. Count working days from the closing date. Saturdays, Sundays and bank holidays do not count.

If the hold remains after T+2

5. Call or write to your bank (SCSB) and ask it to release the lien for the application number. Give the issue name, closing date, amount and the allotment status.
6. Raise the same request with your broker, which can see the mandate status and push the sponsor bank.
7. Ask for compensation in writing. Quote the SEBI framework and the dates. Keep the reference number.
8. Email the registrar to the issue if the bank says it has not received a revoke instruction. The registrar's investor grievance email is on the RHP's cover page.

If you see a wrong debit

9. Match the debit to the allotment. If you were allotted 1 lot, the debit must equal 1 lot at the final price. Anything more is an error.
10. Check the demat account to see whether shares were credited. A debit without shares needs both the bank and the registrar.

Worked example: counting compensation (illustrative)

Rahul bid ₹14,250 in an IPO that closed on Monday. He was not allotted. T+2 is Wednesday. The hold was finally released on the following Monday.

• Working days of delay beyond T+2: Thursday, Friday and Monday = 3 days.
• Option A, ₹100 a day: 3 × ₹100 = ₹300.
• Option B, 15% a year: ₹14,250 × 15% × 3 ÷ 365 = about ₹17.6.
• Higher of the two: ₹300.

For a large bid, the percentage can be higher. On ₹4,80,000 blocked for 3 extra days, 15% a year gives ₹4,80,000 × 0.15 × 3 ÷ 365 = about ₹592, which beats ₹300.

How delay days are counted (working days or calendar days) can depend on the issue's documents, so quote the RHP or GID wording in your complaint. As a comparison, the same ₹4,80,000 in a 7% fixed deposit would earn about ₹276 in three days, which you can check with our FD calculator; the compensation rule is meant to more than cover that.

Escalation path and timelines

SCORES needs your PAN, email and mobile. Upload the application number, allotment status screenshot, bank statement showing the hold, and your earlier complaint. For bank service issues unrelated to the IPO, the RBI Ombudsman route applies, but IPO unblocking is a SEBI-regulated process, so SCORES is the right forum.

Sample complaint

Subject: IPO amount not unblocked - [Company] IPO - Application No. [number]

Dear Sir/Madam,

I applied in the [Company name] IPO, which closed on [date], through
[UPI / net banking ASBA] using my account ending [last 4 digits].
Application number: [number]. Amount blocked: Rs [amount].

As per the registrar's allotment status, I was [not allotted / allotted
[x] shares]. Under SEBI's T+3 timeline the amount should have been
[fully / partly] unblocked by [T+2 date]. As of today, [date], Rs [amount]
is still on hold in my account.

Please release the lien immediately and pay compensation under SEBI's
investor compensation framework for delayed unblocking (Rs 100 per day
or 15% per annum of the amount, whichever is higher), as stated in the
issue's General Information Document.

Attachments: allotment status, bank statement, bid confirmation.
Earlier complaint number (if any): [number]

Name: [your name]   Registered mobile: [number]
Regards,
[Name]

What not to do

• Do not panic on T+1. Allotment and release work through T+2; early holds are normal.
• Do not cancel your UPI mandate in the app after allotment hoping to free the money; it can confuse the debit for allotted shares.
• Do not share OTPs or PINs with callers offering "refund help".
• Do not file on SCORES before giving the bank a chance; SCORES expects you to have approached the entity first.
• Do not let it drift. Complain soon after T+2 so the delay days are on record.

Track upcoming issues and their closing dates on our live IPO dashboard. If an IPO mandate never reached you in the first place, see IPO UPI mandate not received. This article is educational and does not recommend any IPO.

Key takeaways

• IPO money is blocked, not debited; "refund" means the bank releases the hold.
• Under SEBI's T+3 timeline, non-allotted and partly allotted bids should be unblocked by T+2 working days.
• Late unblocking earns compensation of ₹100 a day or 15% a year on the amount, whichever is higher, paid by the intermediary at fault.
• Escalate in order: bank (SCSB) and broker, registrar, SEBI SCORES (21-day response), then SMART ODR.
• Keep the application number, allotment status and bank statement; they decide how fast it is fixed.