Allotment procedure in municipal debt issues requires electronic allotment and timely refunds, with interest for delayed returns. Regulation 12 mandates that allotment in public issues of municipal debt securities be made by date of upload into the electronic book, allows proportionate allotment on oversubscription, and requires issuers and lead managers to ensure electronic allotment, credit of dematerialised securities and refund or unblocking of application monies within the period specified by the Board; where these obligations are not met, the issuer must pay interest to investors as disclosed in the offer document and the lead manager must ensure compliance.