LIC on Wednesday has informed its policyholders in India about some of the pre-requisites for investing in its proposed initial public offer (IPO). Before investing, the policyholder has to update the PAN details and should have demat accounts.
10 percent of LIC’s IPO issue size could now be reserved for its policyholders, as indicated by the finance ministry. As per an amendment made this year to the LIC Act, 1956, the government has permitted LIC to designate policyholders as one of the reserved categories in any LIC public offering in the future.
“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,” the advertisement said.
The life insurance major has been running campaigns urging policyholders to update their PAN in its records. “This is very important from a KYC perspective as well as your ability to participate in the proposed public offering by the LIC…this will be used to help you participate in the proposed offering,” the ad said.
It also outlined the process for updating PAN details online through LIC India‘s portal. You will have to enter your PAN, policy number, date of birth and email ID. If you are not comfortable with the online mode, you can approach your agent to complete the process.
If anyone is keen to invest in LIC’s IPO or capital markets in general and in case one does not have a demat account, it can be considered opening one.
