How can policyholders link their PAN to LIC policies - to be eligible to apply in the LIC IPO in the policyholder category
On 13th February 2021, the government-owned Life Insurance Corporation of India or LIC filed its Draft Red Herring Prospectus as part of its endeavour to go public. It is putting up 316.25 million shares for sale. LIC's IPO is touted to be the country's largest IPO ever, apart from being the biggest government-owned entity going public.
According to the DRHP, 10% of the IPO is reserved for policyholders. Apart from that, policyholders will also be eligible for a discount over the floor price.
LIC IPO Application Essentials
If you are a policyholder in India's largest life insurance corporation and want to invest in the IPO, there are two things you must have – a PAN card and a Demat Account.
While all IPOs require PAN details for subscription, LIC has made it mandatory for policyholders to link their PAN details with their policy in order to apply in the policyholder criteria. That is in part to fulfil their KYC requirements. All policyholders who intend to apply for the IPO in the policyholder category must link their PAN details with their policy number by 28th February 2022.
How to Link your PAN Card to your LIC Policy?
You can update your PAN card details on the LIC website. Here are the steps to follow:
1. Go to LIC's official website - www.licindia.in
2. On the Home Page, click the "Online PAN Registration" option.
3. Once you have arrived on that page, click on the "Proceed" button. You can also check the current linking status by clicking on the “Check Policy PAN Status” button.
4. The next page will ask you for your email address, PAN card details, mobile number and LIC policy number. Input these
5. Enter the correct Captcha code and click on the "Get OTP" option
6. Enter the OTP into the portal and click on the "Submit" option.
Your PAN card details will be updated on LIC's system.
What is a PAN Card, and Why Do You Need It?
India's Income Tax Department issues a Permanent Account Number or PAN card to keep track of an individual's money inflow and outflow. That makes taxation easier for the IT department.
Additional read: How to Apply for PAN card and What are its Importance
What is a Demat Account, and Why Do You Need It?
A Demat Account holds your securities in an electronic format. Once again, to apply for an IPO in the country, having a Demat Account is necessary. When you apply for IPO shares and get an allotment, these are automatically credited to your Demat Account.
Additional read: How to Use a Demat Account Online in India
To apply for the LIC IPO, you must have a Demat Account. If you already have one, you can use this for the application process. If you do not have a Demat Account, you need to apply for one with a registered Depository Participant (DP). Many brokerage firms and banks are registered DPs in India. Select one of your choices and open a Demat Account with them.
Once you have linked your PAN card with your policy details on LIC's website and have a valid Demat Account, you can apply for policyholder reserved shares in the LIC IPO.
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