LIC policy holders must do these two things before Feb 28, otherwise will face problems

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Life Insurance Corporation of India (LIC), India’s largest insurance company, has reserved 10%  that is around 3.16 crores of its 31 crore 62 lakh 49 thousand 885 shares, which will be sold in LIC’s proposed Public Offering (IPO), for its policy holders.

However, the LIC policy holders need to link their Permanent Account Number (PAN) number with their policy and should have a valid demat account before February 28 in order to take part in its IPO.

The government has announced that the LIC’s IPO will arrive in March this year.

So, hurry and link your PAN number with the policy and keep your demat account ready for investing in LIC IPO.

Why should you link Policy-PAN and have demat account?

  • You should visit the company’s site https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus? to check whether your PAN has been updated or not.
  • LIC, the country’s largest insurer, has reserved 10% of its IPO issue size only for its policy-holders. If you have taken a policy of LIC and you want to participate in its IPO, then you need to update or link your PAN in LIC by 28th February.
  • If you are not a policy-holder of LIC and you want to apply for IPO, then you can get IPO allotted from the remaining 90%.
  • LIC is also informing its policyholders about this through advertisements. The company has specified that it is necessary to have your PAN number with LIC record in order to participate in the proposed Public Offering (IPO) and it is also necessary to update KYC.
  • The company has also said that those, who want to participate in the IPO, should get their demat account opened. It is also clearly stated that the demat account will have to be opened by the policy holder at his own cost. LIC will not pay any money for this.

According to reports, LIC is likely to submit the IPO draft to market regulator SEBI in the first week of this month itself after the embeddate value of the firm is finalised. LIC has explained that efforts are being made to evaluate the company for the last 8 months. Since the process of accurate valuation of the firm is slow, the IPO is also getting delayed a bit.

LIC IPO range

LIC’s IPO may range from 40 thousand crores to 1 lakh crore rupees, said reports. That means there is a possibility of lifting so much money from the market. Bankers have put the value of the company at Rs 8 lakh to Rs 10 lakh crore. Around 5-10 per cent stake can be sold. In addition, the government can also allow foreign direct investment in this.

How to link PAN with LIC policy?

  • Go to Corporation’s website www.licindia.in or https://licindia.in/Home/Online-PAN-Registration.
  • Now enter  birth date, gender, email-id, pan, full name, mobile number and the policy number.
  • After completing of entering the details, users have to enter the captcha code as visible on the screen.
  • As you enter the captcha, you will need to click on ‘Get OTP’ button.
  • Now submit the form.
  • A message will pop up after the successful registration request is completed.
  • you can also get your PAN card linked with your account through your LIC agent.

Also Read: LIC policyholders update your PAN and demat details for participation in IPO

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