LIC asks policyholders to update PAN details to participate in IPO; here's how to do it

In the run-up to its initial public offering (IPO), the Life Insurance Corporation (LIC) has asked its policyholders to update their Permanent Account Number (PAN), so that they can take part in the offering. 

On Wednesday, LIC had also put out an advertisement in leading newspapers calling upon its 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. 

According to the proposed plan, up to 10% of the IPO's issue size would be reserved for LIC's policyholders. 

"In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation's records. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account," the state insurer said in a public notice. 

Also Read: LIC hand holds its 25 cr policyholders in opening demat accounts ahead of IPO

In relation to DEMAT accounts, LIC said, if a policyholder currently does not hold a valid DEMAT account, he or she should consider opening it at their own cost. 

"You would incur costs towards opening of a DEMAT account and or PAN issuance and maintaining the DEMAT account or other ancillary costs. All such costs would have to be solely borne by you. No costs would be borne by the Corporation," it clarified. 

Documents needed to update PAN details

• Keep your PAN card ready in addition to the list policies.
• Mobile number to be entered
• OTP which will be sent by LIC to the mobile number entered

How to update PAN if not in LIC database 

• Go to the official LIC website 
• Click on the 'Online PAN Registration' option 
• Tap the 'Proceed' button on the online PAN registration page 
• Enter your Pan, email address, mobile number, and LIC policy number 
• Input the Captcha code into the box 
• Request an OTP from your registered mobile number 
• Enter the digits into the portal and submit once you get the OTP 
• After the form submission, a message will be displayed on the success of the registration request 

Also Read: IPO-bound LIC seeks help from external agency to assess officers for promotion to senior management roles

How to check LIC-PAN status 

• Go on the https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus 
• Enter your date of birth, PAN information, policy number and the Captcha, and press the submit button. 

LIC IPO 

The Union Cabinet in July 2021 cleared disinvestment of the country's largest insurer LIC and a panel headed by the finance minister has been authorised to decide on the quantum of stake dilution.

The government has already brought in required legislative amendments in the LIC Act for the proposed IPO through the Finance Act 2022.

In her Budget speech in February this year, Finance Minister Nirmala Sitharaman said the IPO of LIC would be floated in 2021-22.

The listing of LIC will be crucial for the government to meet its disinvestment target. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.

Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling the government's stakes in public sector banks and financial institutions. The remaining Rs 75,000 crore would come as CPSE disinvestment receipts.