LIC IPO: Policyholders of LIC wishing to participate in LIC’s IPO can do so only after the PAN details are updated and they have a demat account. All policyholders, except group plans, are eligible to bid for an IPO under the Policyholder Reservation Portion. Policyholders Reservation Portion is reserved by LIC for policyholders. 10% of the total IPO offer is reserved for LIC policyholders.
Joint policy can be applied by only one policyholder
As per LIC’s DRHP FAQ, in a joint LIC policy, only one of the two policyholders can apply for an IPO under the reservation portion. The PAN number of the applicant (you or your spouse) bidding in the offer should be updated in the policy record. The applicant should have a demat account in his/her name, and if the demat account is also a joint one, the applicant should be the first/primary holder of the demat account.
Is LIC’s IPO bad news for other insurance stocks, these shares have fallen by 15%
Not all policyholders are eligible to bid
Similarly, not all policyholders of LIC are eligible to bid for shares in IPO under this reserve category.
If you and your partner have a joint demat account (where you have two different policies and PAN is linked to them), then you cannot apply for the offer on the basis of one joint demat account. Under SEBI ICDR Regulations, separate applications cannot be made by both the beneficiary of a demat account. Application can be made in the name of first/primary beneficiary only. Only the name of the first/primary beneficiary can be used for submitting an application.
Household savings will play a big role in LIC’s IPO, know why
Must have demat account
Policyholders who wish to apply for LIC shares must have a demat account. As per SEBI regulations, no equity shares can be issued by any company in physical form, and equity shares can be issued only in demat form. A policyholder cannot apply from the demat account of his spouse or son or any relative. NRI policyholders cannot apply under the reservation portion. Only a person resident in India during the bid or offer period is eligible to apply.
Spouse of annuity policyholder (now deceased) who is currently in receipt of annuity is not eligible to apply.
,