lic ipo: These LIC policyholders can’t apply for discounted IPO shares

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The Life Insurance Corporation of India (LIC) has filed its DRHP with the markets regulator, SEBI, for its much-anticipated initial public offering (IPO). According to the DRHP, of the total shares offered via the IPO, up to 10% would be reserved for LIC policyholders. Further, policyholders and employees will receive a discount.

Consequently, many policyholders may be interested in applying for allotment in the IPO. However, not all LIC policyholders will be eligible to apply via Policyholder Reservation Portion.

Here is a look at which LIC policyholders are not eligible to apply for the LIC IPO under the Policyholder Reservation Portion, according FAQs in the LIC DRHP.

  • If you have a joint demat account in the name of your spouse and yourself (where you have two separate policies and PAN is linked therein) you cannot apply in the Offer based on that one joint demat account. As per SEBI ICDR Regulations, individual applications cannot be made by both beneficiaries of the demat account. Application can be made only in the name of the first/primary beneficiary. Only the first/primary beneficiary’s name can be used to submit an application.
  • The spouse of an annuity policyholder (now deceased) who is currently receiving annuities is not eligible to apply for the LIC’s equity shares in the offer.
  • A policyholder has to have the demat account in his/her name. A policyholder cannot apply from the demat account of his/her spouse or son or a relative.
  • NRIs cannot apply for the IPO via the Policyholder Reservation Portion. Only a person residing in India during the bid or offer period is eligible for applying in the offer.
  • A nominee under a policy issued by the Corporation, is not eligible to Bid for the Equity Shares under his name. only the Eligible Policyholder(s) is eligible to Bid under the Policyholder Reservation Portion.
  • All policies other than group policies qualify for Bidding in the Policyholder Reservation Portion.
  • Only LIC policyholders are eligible to bid under the Policyholder Reservation Portion. However, one can apply as a RIB or Non-Institutional Bidder.

Also read:
LIC IPO: Deadline for policyholders to update PAN to apply for shares



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