India’s biggest IPO (LIC IPO) is going to open in the market soon. The eyes of retail investors are on this IPO of the government insurance company. Market experts are considering this IPO as a great opportunity for retail investors to earn money from the market.
LIC has announced reservations and discounts for its policyholders in this proposed IPO. LIC has released the FAQs that which policyholders will get the benefit of this reservation and discount and who will not.
Parents can apply for child policy
An attempt has been made to answer all the queries of the insured in the quiz available on the website of LIC. After the announcement of the exemption, the question is also arising in the minds of the people that if there is a policy in the name of the children, then who will get the benefit of the discount on the IPO. It has been said that in the case of a policy of a minor, the proposer is deemed to be the owner of the policy. In this way, whoever proposes the policy is the policyholder and can avail of the benefit of reservation.
The benefit will be available in a joint policy
One such question is that if there is a joint policy, will both the husband and wife get the benefit of reservation. In response, LIC has said that only one of the two policyholders can apply for the reservation portion. Other participants can apply for the general retail category. In this IPO, a 10 percent stake has been kept separately for the policyholders. They will also get some discount on the floor price.
Get this work done today, otherwise, you will not get the benefit
However, there are some prerequisites for bidding in LIC’s IPO. If you are a policyholder of LIC, it is mandatory to link PAN with the policy to avail of the exemption and reserved category. This work can be done on the website of LIC. Its deadline ends on February 28. After this linking will not get the benefit of the discount. Apart from this, it is also necessary to have a Demat account in the name of the policyholder.
