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

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Life Insurance Corporation of India (LIC) has released an advertisement informing its policyholders about some of the pre-requisites for investing in its proposed initial public offer (IPO) – updating their PAN details and opening demat accounts.

Update your PAN

Now, LIC policyholders can participate in public offering in the future, as per an amendment this year to the LIC Act, 1956.

The Finance Ministry has indicated that up to 10 percent of LIC’s IPO issue could be reserved for its policyholders.

However, LIC policyholders need to keep their PAN details updated in the Corporation’s records in order to participate in any such public offering.

The life insurance corporation has been urging policyholders to keep PAN details updated in its records.

The advertisement said, “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.”

How to update PAN details online?

If you are wondering how to update PAN details in LIC. You can do so online at LIC India’s portal.

In order to update PAN details, you need to know your PAN, policy number, date of birth and email ID.

If you don’t want to do this online, you can go to your agent to complete the process.

Note that every investment comes with risk.

Pankaj Mathpal, Founder, Optima Money Managers said that LIC wants to ensure that its policyholders are KYC-compliant, and therefore eligible to apply for IPO.”

He also added, “In case there is any reservation for policyholders, then they should not miss it. However, the risks involved in investments should have been explained in detail in the ad.”

Demat account

Demat or Dematerialised Account lets you hold the shares and securities in digital or an electronic form. That means, if you want to invest in LIC’s IPO or capital markets in general, then you will need to have a Demat account.

Pankaj Mathpal says, “Policyholders should know the risk of investing in shares and avoid it if it doesn’t suit the objective of their investment. Demat account is not very expensive now, it still doesn’t make sense if they want to invest only in LIC’s IPO. If you are an extremely conservative investor who has never invested in equity markets, you need to tread carefully.”

Shweta Jain, Founder, Investography says, “LIC has a huge customer base and a great reputation. People would invest in anything LIC, so it’s important that they understand the risks that come with equity. I would recommend investment in LIC IPO in future provided the price is right, time horizon is long-term and they have a diversified portfolio.”

So, think carefully, access the benefits and the risks before opening a demat account.

Along with that, you must ensure that your PAN is updated in LIC’s records irrespective of whether you wish to invest in its IPO or not.

Also Read: Best LIC Policy: Deposit just Rs 76 daily to get 10 lakhs on maturity

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