Can joint LIC policyholders apply for discounted IPO shares?

LIC policyholders who are interested in participating in the LIC IPO can apply by updating their PAN details and by having an active demat account. All policyholders, with the exception of those under group plans, are eligible to bid for the LIC IPO under the Policyholder Reservation Portion, i.e., the portion of the LIC IPO reserved for policyholders. Up to 10% of the total shares on offer via the IPO is reserved for eligible LIC policyholders.

Can joint LIC policyholders apply for discounted IPO shares?

According to FAQs mentioned in the LIC’s Draft Red Herring Prospectus (DRHP) dated 13th February 2022, in a joint LIC policy only one of the two policyholders can apply for shares under the Policyholder Reservation Portion. 

If a person is having a joint life policy with their spouse are both the person and their spouse both eligible for reservation?

Only one of the two can apply for the Equity Shares under the Policyholder Reservation Portion category. 
The PAN number of the applicant Bidding in the Offer (you or your spouse) needs to be updated in the policy records. The applicant has to have a demat account in his/her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account.

Just like this, not all LIC policyholders are eligible to bid for shares in the IPO under the Policyholder Reservation Portion category.

Check - How to bid for LIC IPO Using UPI ?

Does a person with a joint demat account with their spouse but having two different policies are eligible for the reservation?

If you have a joint demat account in the name of your spouse and yourself (where you have two separate policies and PAN is linked therein) you cannot apply in the Offer based on that one joint demat account. As per SEBI ICDR Regulations, individual applications cannot be made by both beneficiaries of the demat account. Application can be made only in the name of the first/primary beneficiary. Only the first/primary beneficiary's name can be used to submit an application.

A policyholder has to have the demat account in his/her name. A policyholder cannot apply from the demat account of his/her spouse or son or a relative. 

Are NRIs having a LIC Policy eligible for the Reservation?

NRIs cannot apply for the IPO via the Policyholder Reservation Portion. Only a person residing in India during the bid or offer period is eligible for applying in the offer.

Are the family members of the deceased policyholder who receive annuities eligible for the Reservation?

The family member (nominee) of an annuity policyholder (now deceased) who is currently receiving annuities is not eligible to apply for the LIC’s equity shares in the offer.