Rs 60 low cost for policyholders; 5 issues policyholders ought to know earlier than making use of

LIC IPO: Rs 60 low cost to policyholders; 5 issues policyholders ought to know earlier than making use of

New Delhi: The federal government introduced on Wednesday that the nation’s greatest IPO – LIC IPO will likely be launched subsequent week on Might 4. The problem will shut on Monday, Might 9. Workers and policyholders will get a reduction of Rs 45 and Rs 60 respectively within the preliminary public providing of Life Insurance coverage Company of India.
As per the DRHP filed with SEBI, LIC will reserve as much as 10 per cent for its LIC policyholders underneath the policyholder reservation portion. So, listed here are 5 issues that LIC policyholders ought to know earlier than investing within the mega IPO.

NRI LIC Policyholder

Below the policyholder reservation portion, LIC has put aside as much as 10 per cent of the shares offered in its IPO for its policyholders. Nonetheless, NRI policyholders and others who don’t reside in India won’t be eligible to use for the policyholder reservation portion. Solely resident Indians can apply.

Demat Account Necessary

To put money into LIC IPO, the policyholder should be certain that their PAN particulars are up to date in LIC’s system and that they’ve a demat account. In line with the LIC DRHP filed with SEBI, a policyholder who doesn’t replace his PAN earlier than February 28, 2022, won’t be eligible to take part in its IPO underneath the portion reserved for policyholders.

LIC policyholder with lapsed coverage

A policyholder whose LIC coverage has lapsed can nonetheless apply for the IPO via the policyholder reservation portion. All these insurance policies which haven’t handed out from LIC information resulting from maturity, give up, or dying of the policyholder are eligible.

Joint LIC Policyholder

The policyholder can apply for less than one of many two fairness shares, underneath the reservation portion class. The PAN of the bidder ought to be amended within the insurance coverage information. Additionally, the applicant ought to have a demat account in his/her personal title, and in case of a joint account, the applicant ought to be the primary/main account holder.

LIC policyholder underneath group coverage

All insurance policies aside from group insurance policies are eligible to bid within the policyholders’ reservation portion.

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