LIC Policyholders Can’t Buy IPO Shares If They Don’t Have These Things
As the last quarter of the fiscal is about to end, all eyes are on the huge initial public offering (IPO) of LIC. The government is likely to file draft papers for LIC IPO with market regulator SEBI by next week, news agency PTI reported quoting a top official. Finance Minister Nirmala Sitharaman in her 2022-23 Budget speech said: “The public issue of the LIC is expected shortly.”
If you are an LIC policyholder then you can participate in the IPO. You will need two things – A PAN card linked with your LIC policy account, and a Demat account.
In the LIC IPO, up to 10% of the issue size would be reserved for policyholders.
The life insurance company has asked its policyholders to update their PAN, so that they will be able to participate in the IPO.
“In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation’s records. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account,” LIC had said in a public notice earlier.
The LIC IPO is very highly anticipated, so much so that some people are buying new policies just to be eligible to participate in the IPO.
Requirements to participate in the IPO
1) A PAN account linked to your LIC policy account
Your PAN details are a must if you wish to subscribe to LIC IPO
Here’s how you can check and update your PAN with your LIC policy:
Go to the website: https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
Enter your Policy Number, Date Of Birth(dd/mm/yyyy), PAN and captcha in the proper boxes.
Press the Submit button.
After this, you will see the status of your LIC policy and PAN link.
Having a demat account the main requirements for buying and selling shares in the equity markets. These accounts have been maintained by depository organisations like NSDL and CDSL. Documents like Aadhar, PAN details and address proof etc. are also required. LIC has over 25 crore policyholders, which is a larger number as compared to 8 crore existing Demat accounts.
“On average around 20-30 lakhs, Demat accounts are opening per month in the whole broking industry. If we compare the investment in the financial market vs population in India then the ratio is quite low,” said Ravi Singh, Vice President & Head of Research, Share India Securities.
“Oversubscription is expected so we recommend applying through 2-3 different Demat accounts so that the chance is high,” said Manoj Dalmia Founder and Director-Proficient Equities Limited.
The LIC listing paramount for the government
LIC’s listing is paramount for the government to meet the lowered revenue estimates of ?78,000 crore for the current financial year. The government has been able to raise about ?12,000 crore so far by the privatisation of Air India and stake sale in other PSUs.