As the time for much-awaited mega public offering of government's largest personal insurance company Life Insurance Corporation of India (LIC) draws closer, policymakers are gearing up to participate in its initial public offering (IPO).
According to the latest update, the government is likely to file draft papers for LIC IPO market regulator SEBI this week, while a portion of the issue would be reserved for anchor investors.
In an interview with new agency PTI, Tuhin Kanta Pandey, Secretary to the Department of Investment and Public Asset Management (DIPAM), said approval of the insurance regulator is awaited, post which the draft prospectus, detailing the size of the share sale, will be filed.
The issue, after approval of SEBI, is likely to hit the market in March, he said adding, up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
LIC's listing is crucial for the government to meet the lowered revenue estimates of Rs 78,000 crore for the current fiscal.
Earlier, LIC had made a public announcement asking policyholders to update their Permanent Account Number (PAN) details and open demat accounts to participate in the public issue.
Moreover, investors will only be able to participate in any public offering if they have a valid demat account. Those who do not have a demat account have been advised by LIC to get one at their own cost.
HOW TO OPEN DEMAT ACCOUNT:
- Choose a broker you want to open your demat account with. Online banks, stockbrokers and digital investment platforms, for example.
- Then, visit the broker’s website and initiate the demat account opening procedure and assign a nominee to your account.
- Fill out the form and then complete the KYC (Know your Customer) process by providing relevant information as asked.
- Note that you then need to provide scanned copies of documents like identity proof, address proof, bank account statement and income proof.
- Pay the fees required for trading with the brokerage after submission and verification.
- You also need to do an In-Person Verification with the brokerage house, either online or by visiting their office. This step is mandatory.
- After your request to open a demat account is approved, you will receive a unique 16-digit beneficial owner identification number, also called the demat account number. This will be used to access your demat account online.
- And viola! Your account will be made. Log in to you demat account to commence your stock-trading journey.
Finance Minister Nirmala Sitharaman in her 2022-23 Budget speech had said: ''The public issue of the LIC is expected shortly.'' Pandey said the embedded value of Life Insurance Corporation (LIC) has been arrived at and it has to now get clearance from insurance regulator IRDAI.
The Cabinet Committee on Economic Affairs had in July last year cleared the proposal for LIC's IPO.
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