LIC IPO: Deadline For Linking PAN Card With LIC On February 28. Check Key Details

According to LIC, February 28 has been set as the deadline for linking the policy - IPO - with the PAN card.

New Delhi: Life Insurance Corporation (LIC)’s big-ticket initial public offering (IPO) will soon hit the market. According to LIC, February 28 has been set as the deadline for linking the policy with the PAN card. This means LIC policyholders won’t be able to subscribe to the LIC IPO if their PAN cards are not linked.

“A policyholder of our Corporation shall ensure that his / her PAN details are updated in the policy records of our Corporation at the earliest. A policyholder who has not updated his / her PAN details with our Corporation before expiry of two weeks from the date of the filing of this Draft Red Herring Prospectus with SEBI (i.e., by February 28, 2022) shall not be considered as an Elligible Policyholder,” the Life Insurance Corporation said in a statement.

One needs to have an active Demat account to buy LIC IPO or for that any IPO. The Demat account is where your securities will be held digitally. LIC IPO date 2022 is expected to be announced in March. The IPO is expected to make LIC the company with the largest market cap in India.

The policyholders, according to a report by Financial Express (FE), who have one or more policies in their name can apply under the ‘Policyholder Reservation Policy’.

LIC IPO: Key Points

• LIC policyholders need to link the PAN details with their LIC policies before February 28, 2022.
• The reservation is only valid for Indian residents. NRI policyholders cannot avail of the reservation.
• According to the report, a policyholder can bid the amount up to Rs 2 lakh net discount. Only the policies which have a discount of not more than Rs 2 lakh will be considered while allotment.
• Demat Account: The policyholders can apply for the IPO through their own Demat accounts. It will contain all the details like PAN number etc.
• ABSA Method: Another method that can be used for the application is Applications Supported by Blocked Amount (ABSA). According to FE, under this method, the full amount of the bid will be blocked by the bank in the account of the ABSA bidder.
• Policyholders using this method will have to ensure that their ABSA account has sufficient balance for credit.
  Also, the documents need to be submitted to the broker, registrar and transfer agents.
• People can also apply for LIC IPO using the United Payments Interface (UPI method). The investor has to select ‘Pay using UPI ID’ as the payment method while submitting the application.

How to link PAN card with LIC policy

• Login into the official website of LIC, www.licindia.in
• Select tab ‘Online PAN Registration’ on the homepage
• Click on the ‘Proceed’ option
• Yon then need to enter these details – e-mail ID, PAN number, mobile phone number and policy number
• Now enter the Captcha and click on ‘Get OTP’
• Enter the OTP received on the mobile number in the box given on the screen
• Click on the ‘Submit’ option
• You will receive a message on the screen about the success of the process