“Our account opening numbers have gone up by 35% week-on-week and this surge can directly be attributed to the demand for the forthcoming LIC IPO,” said Varun Sridhar, CEO, PayTM Money.
Several broking houses are also waving off demat account opening charges as well as not passing on stamp duty and other statutory levies onto the in-coming new customers. As an additional benefit, some are also waving off the demat maintenance charges for the entire lifetime while some is restricting the freebee to just the first year.
Religare Broking, a domestic broking house, recently joined hands with Spice Money, a fintech company focussed on rural India, to open demat accounts in India’s hinterlands. Under the partnership, Spice Money’s agents in the rural areas, called Adhikaris, will assist people to open demat accounts with Religare and also help them invest in the LIC IPO.
According to Sanjeev Kumar, Co-Founder & CEO, Spice Money, its partnership with Religare would bring forth the opportunity for rural citizens to participate in the mega LIC IPO and other capital market-linked products in the future. “Access to the IPO of a brand that commands nation-wide trust, like LIC, will help rural citizens warm up to the phenomenon of investment opportunities they are hitherto unaware of,” Kumar was quoted in a release.
PayTM Money is also tapping prospective customers in the hinterlands to open accounts with it and invest in the life insurer’s IPO. It has placed QR codes at kirana stores across the country, to introduce the common man to the power of investing with free demat accounts for lifetime, it said in a release. “Using these QR codes, any individual will be able to easily create their free demat accounts… and place their bids for the LIC IPO.”
Integrated, a domestic broking house, is waving off Rs 500 for customers opening demat accounts with it, a mailer from the company said.