The T plus 3 timeline is the schedule SEBI requires for completing an IPO after it closes. T stands for the closing day of the issue, and the three working days that follow are used to finish allotment and list the shares. On T plus 1, the registrar finalises the basis of allotment with the exchange. On T plus 2, the shares are credited to the demat accounts of successful applicants and the unused money blocked through UPI or ASBA is released. On T plus 3, the company’s shares start trading on the exchange. The shorter timeline replaced the older six-day cycle and reduced the time that investors’ money stays blocked, and it also cuts the gap in which the grey market operates. Holidays and weekends are not counted as working days, so the calendar dates move accordingly. Delays by intermediaries can attract penalties, and investors whose refunds or credits are late can complain to the registrar, the bank or SEBI. IPO Bulletin shows the expected allotment, credit and listing dates on every IPO page, based on the issue’s closing date.
Example: An IPO closes on Friday. T plus 1 is Monday, the day the basis of allotment is finalised. T plus 2 is Tuesday, when shares are credited and refunds released. T plus 3 is Wednesday, the listing date.