LIC public issue: Only ‘resident’ policyholder can apply under quota – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/tp-markets/lic-public-issue-only-resident-policyholder-can-apply-under-quota/article65142534.ece

IPO likely to be launched in 2 weeks

Even as customers rush to meet the February end deadline to link their permanent account numbers with their LIC policy, only those policyholders residing in India during the bid or offer period will be eligible for applying in the portion reserved for policyholders. The Centre is hoping to launch the IPO of LIC in the next two weeks . About 10 per cent of the offer will be reserved for eligible policyholders. The Centre is looking to sell 5 per cent stake in the life insurance behemoth

According to the draft red herring prospectus, LIC policyholders living or studying abroad will not be eligible to bid in this category. “She needs to be residing in India during the Bid/Offer period to be eligible for applying in the offer,” it has said in a detailed FAQ, responding to a situation whether a major daughter studying in Canada with an LIC policy in India would be able to bid in the policyholder reservation portion.

For joint accounts

In case of a joint demat account of spouses, the DRHP has said application can be made only in the name of the first or primary beneficiary.

“As per SEBI ICDR Regulations, individual applications cannot be made by both beneficiaries of the demat account,” it has explained.

Similarly, in case of a joint life policy, only one of the two can apply for the Equity Shares under the Policyholder Reservation Portion category.

Okay to lapsed policyholders

Significantly, policyholders with lapsed policies can also apply in the category.

“All policies which have not exited our records by way of maturity, surrender or by way of death of the policyholder are eligible for reservation under the Policyholder Reservation Portion,” the DRHP said. The spouse of a now deceased policyholder under an annuity policy and who currently receives annuities, will also not be eligible to bid in this category. “No, since you are not a policyholder and only a beneficiary, you are not eligible to apply in the offer,” the DRHP said. However, a parent who is the proposer of a policy for a minor child would be eligible in this category.

Monday is the last date for LIC policyholders to link and update their PAN, so that they can bid in the IPO. According to sources, there has been robust response from policyholders

Eligible policyholders can bid for shares up to Rs. 2 lakh in the reserved portion and will also be offered a discount.They can also apply in other categories for the IPO.

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