Life Insurance Corporation of India (LIC) issue (LIC IPO) is coming next month. The company has sent Draft Red Herring Prospects (DRHP) to SEBI. According to this, up to 10 percent of the shares will be reserved for the policyholders of LIC. Apart from this, policyholders and employees will also get a discount on the share price.
It is believed that more policyholders will show interest in LIC’s IPO due to the discount in the price. However, not all policyholders will be allowed to apply for shares through reserve portion. This has been told in the company’s DRHP. On the basis of this, we are telling you that who will not get the benefit of reserve shares.
These policyholders will not be allowed to apply through Reserve Portion:
If you have a joint demat account in your own spouse and in your own name (when you have two separate policies and have PAN linked with them) then you will not be able to apply under reserve portion on the basis of this joint demat account. Under SEBI ICDR Regulations, both the beneficiary individual application of the demat account cannot be entered. Application can be made in the name of first/primary beneficiary only.
Spouse of Annuity Policyholders (who have died) who are receiving annuity cannot apply under this offer.
Demat account should be in the name of the policyholder. A policyholder cannot apply from the demat account of his spouse or child or any relative.
NRI policyholders will not be able to apply for an IPO under the reservation portion. Only a person residing in India at the time of offer will be able to apply under this offer.
No nominee will be able to apply for shares in the IPO in his own name. Only eligible policyholders will be allowed to apply for the IPO under the reserve portion.