A lot of hype is currently surrounding the news of the upcoming LIC IPO. This is because this initial public offering (IPO) by one of the giants, if not the giant of the Indian insurance sector, offers a great opportunity for investment and the ongoing growth of wealth. Just on the basis of the fact that the Life Insurance Corporation (LIC) holds a staggering almost-seventy percent of the market share in the insurance segment, with a rosy outlook of development and growth, investors are anxiously awaiting the release date of the IPO.
Additionally, 10% of subscriptions have been reserved for any holders of an LIC policy and there’s a good chance that these applications will get IPO allotments. Therefore, having a Demat account is essential if you are an existing policyholder who wishes to invest in the LIC IPO. Moreover, you should know how to open a Demat account.
In case you are the holder of an LIC policy, wishing to apply for the insurer’s upcoming IPO, you have to first make sure your PAN Card information is updated in the records of LIC. You should also have a Demat account and need to know how to open a Demat account online. LIC, in various advertisements promoting the proposed IPO, has recommended that policyholders must mandatorily have all their PAN details updated and open a Demat account online. Moreover, if you wish to participate in any IPO whatsoever, it is compulsory to have a Demat account. Banks and brokerages offer you the opportunity to open a Demat account, and you may think your bank is the best bank to open a Demat account. However, you should consider a brokerage like Motilal Oswal to open a free Demat account online. This facilitates you having a Demat account for investment purposes as well as applying for several other forms of investment in the future.
If your bank is a DP, or depository participant, you can open a Demat account at your bank’s Demat department offline. All you have to do is fill out a form, and you can hold a Demat account in a single or joint name. Moreover, you can also add a nominee. An easier way to open a Demat account is to do it online. You can open one at reputed online platforms such as that of Motilal Oswal’s in the following steps:
You can open a Demat account for minors if it is a joint account with a guardian adult. You will have the option to select the names and ages of holders in the course of the application process.
It's a good idea to invest in an IPO like the one that’s coming up from LIC. With almost guaranteed prospects of returns on investment, you should make sure you have a Demat account opened, so that you can make the most of investments like this and more at Motilal Oswal.