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

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

New DelhiThe federal government on Wednesday introduced that the nation’s greatest IPO – LIC IPO – will launch subsequent week on Might 4. The difficulty will shut on Monday, Might 9. Within the preliminary public providing of Life Insurance coverage Company of India, staff and policyholders will get a reduction of Rs 45 and Rs 60, respectively.
As per the DRHP filed with SEBI, LIC will reserve as much as 10 per cent for its LIC policyholders below the policyholder reservation portion. So, listed below are 5 issues that LIC policyholders ought to know earlier than investing in Mega IPO.

NRI LIC Policyholder

Underneath the policyholder reservation portion, LIC has put aside as much as 10 p.c of the shares bought in its IPO for its policyholders. Nonetheless, NRI policyholders and others who don’t reside in India is not going to be eligible to use for the policyholder reservation portion. Solely resident Indians can apply.

Demat Account Obligatory

To put money into LIC IPO, the policyholder wants to make sure that their PAN info is up to date in LIC’s system they usually have a demat account. In keeping with the LIC DRHP filed with SEBI, a policyholder who doesn’t replace his PAN earlier than February 28, 2022, is not going to be eligible to take part in its IPO below the portion reserved for policyholders.

LIC policyholder with lapsed coverage

A policyholder whose LIC coverage has expired can nonetheless apply for an IPO by way of the policyholder reservation portion. All insurance policies not taken out of LIC file as a consequence of maturity, give up, or loss of life of the policyholder are eligible.

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Joint LIC Policyholders

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

LIC Policyholders below Group Coverage

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

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