The Life Insurance Corporation LIC has asked its policyholders to update their PAN to take part in the offering in the run-up to its initial public offering IPO.
On Wednesday, LIC had also published an advertisement in leading newspapers calling for policyholders to update their PAN details as it is important from a KYC Know-Your Customer perspective as well as open Demat accounts to participate in the IPO.
Up to 10% of the IPO's issue size would be reserved for policyholders, according to the proposed plan.
In order to participate in a public offering, policyholders need to make sure their PAN details are updated in the Corporation's records. If you have a valid DEMAT account, you can only subscribing to any public offering in India, the state insurer said in a public notice.
In relation to DEMAT accounts, LIC said that if a policyholder does not hold a valid DEMAT account, he or she should consider opening it at their own cost.
It would incur costs for the opening of a DEMAT account and PAN issuance and maintenance of the DEMAT account. All costs would have to be solely borne by you. It clarified that no costs would be borne by the Corporation.
Keep your PAN card ready for list policies.
OTP will be sent to the mobile number entered by LIC.
How do I update PAN if I am not in the LIC database?
Go to the official LIC website.
Tap the 'Proceed' button on the online PAN registration page.
Input the Captcha code into the box.
After submission of the form submission, a message will be displayed on the success of the registration request.
Enter your date of birth, PAN information, PAN information, and Captcha, and press the submit button.
The Union Cabinet cleared disinvestment of the country's largest insurer LIC in July 2021 and a panel headed by the finance minister has been authorised to decide on stake dilution.
The Finance Act 2022 legislation has already been brought in by the government to make necessary legislative amendments to the LIC Act for the proposed IPO.
Finance Minister Nirmala Sitharaman said in her budget speech in February this year that the IPO of LIC would be launched in 2021 -- 22.
The government needs the listing of LIC to meet its disinvestment target. The government hopes to mop up 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.
Of the 1.75 lakh crore, 1 lakh crore comes from selling the government's stakes in public sector banks and financial institutions. The remaining 75,000 crore would come as CPSE disinvestment receipts.