LIC IPO for policyholders – Eligibility & FAQ

Yes. As per SEBI ICDR Regulations, no equity share can be issued by any company in physical form and the equity shares can only be issued in dematerialized form. Hence, any one, whether policyholders or retail investors, should have a demat account for applying in the LIC IPO.

There is no lock-in period and the policyholders can sell the Equity Shares immediately on listing of the Equity Shares, if they choose to do so.

No, Bidding under the Policyholder Reservation Portion is only for policyholders of our Corporation. However, you can apply under RIB or Non-Institutional Bidders category.

There is a minimum number of Equity Shares (x) which will have to be applied under the Offer in respect of all categories. Hence, Eligible Policyholder(s) also have to apply for the said minimum x number of Equity Shares, as specified in the Offer Documents.

Eligible Policyholder(s) can apply for such number of Equity Shares in multiples of Equity Shares such that the Bid Amount does not exceed ₹200,000 (net of Policyholder Discount).

No minimum balance is required like in demat account.

No. The policyholder has to have the demat account in his/her name.

No. The maximum Bid Amount is limited to ₹200,000 (net of Policyholder Discount, if any). However, Eligible Policyholder(s) can also apply for Equity Shares under the RIB category or Non-Institutional Bidders category for an additional amount of up to ₹200,000 (net of Policyholder Discount) and more than ₹200,000 (net of Policyholder Discount), respectively.

Eligible Policyholder(s) are offered a discount of ₹ Z per Equity Share. In case, the Offer Price (the price at which shares are allotted to retail and other investors) is ₹X, Eligible Policyholder(s) will be allotted Equity Shares at ₹ (X-Z) per Equity Share.

No, investment in Equity Shares of our Corporation does not qualify for tax exemption, as per income tax rules.

Eligible Policyholder(s) can bid at the Cut-off Price. However, in that case it is necessary to keep the Bid Amount blocked for investment at the Cap Price (maximum price) net of discount, since the Cap Price may turn out to be the Cut-off Price.

Only one of the two can apply for the Equity Shares under the Policyholder Reservation Portion category. The PAN number of the applicant Bidding in the Offer (you or your spouse) needs to be updated in the policy records. The applicant has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account.

She needs to be residing in India during the Bid/Offer period to be eligible for applying in the Offer.

Since you are the owner of the policy and hence being a policyholder, you are eligible for reservation under the Policyholder Reservation Portion.

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.

Yes, if you are applying for Equity Shares as a karta you are eligible to Bid under the Policyholder Reservation Portion.

The easiest option is through the option made available on the website of our Corporation for updating the PAN. You need to have your PAN number, policy number, mobile number and email ID and through a very simple process, your PAN number will be updated. You may also approach our offices wherein the PAN number can be updated.

To be eligible for reservation under the Policyholder Reservation Portion category, the policy should have been issued on or before the date of this Draft Red Herring Prospectus and should not have exited by way of surrender, maturity or death claim on the Bid/Offer Opening Date.

As per SEBI ICDR Regulations, individual applications cannot be made by both beneficiaries of the demat account. Application can be made only in the name of the first/primary beneficiary.

Yes, all policies other than group policies qualify for Bidding in the Policyholder Reservation Portion.

Yes.

No, since you are not a policyholder and only a beneficiary, you are not eligible to apply in the Offer.

No, the Allotment is not granted. Approximately 10% of the Offer Size is reserved for Eligible Policyholder(s). The Allotment will be subject to competitive bidding and will depend on the demand in the bidding process.

No, only the Eligible Policyholder(s) is eligible to Bid under the Policyholder Reservation Portion. Nominee is not eligible.

The last date is . If it is not registered before , you are not eligible.

No, only resident Indians can apply.

No, there is no age restriction. All Eligible Policyholder(s) on the date of this Draft Red Herring Prospectus and the policy continuing without exit on the Bid/Offer Opening Date are eligible to apply in the Offer.

All Eligible Policyholder(s), irrespective of premium amount or sum assured or number of policies will be treated under the same footing and the Equity Shares will be allotted on a competitive bidding basis.

No such condition. All Eligible Policyholder(s), subject to rules are eligible to Bid under the Policyholder Reservation Portion.