Key Takeaways
- Finance Minister Nirmala Sitharaman stated the government did not direct LIC to invest in Adani Group.
- LIC’s investments are made independently based on due diligence and regulatory compliance.
- The insurer’s total exposure to Adani Group includes equity and debt investments worth over Rs 48,000 crore.
Finance Minister Nirmala Sitharaman has clarified that the government did not issue any directives to the Life Insurance Corporation of India (LIC) regarding its investments in Adani Group companies. The statement was made in Parliament on Monday in response to a question from TMC MP Mahua Moitra.
Independent Investment Decisions
Sitharaman explained that LIC’s investment decisions are taken independently. They follow strict due diligence, risk assessment, and fiduciary compliance. These processes are governed by the Insurance Act, 1938, and regulations from IRDAI, RBI, and SEBI.
“The Ministry of Finance does not issue any advisory or direction to LIC in connection with matters related to investment of LIC funds,” the Finance Minister stated in a written reply.
LIC’s Adani Group Exposure
Following its standard protocols, LIC has invested in about half a dozen listed Adani Group companies. The combined book value of these equity investments is Rs 38,658.85 crore. The insurer has also committed an additional Rs 9,625.77 crore to the group’s debt instruments.
Multi-Layered Oversight
The minister highlighted that LIC’s investment processes undergo multiple layers of oversight. This includes concurrent, statutory, and systems audits, IFC reviews, internal vigilance checks, and IRDAI inspections.
“There is no direct oversight by the Government on investments made by LIC,” Sitharaman explained.
Broader Portfolio Context
As of September 30, 2025, LIC’s total investment in Nifty 50 companies stood at Rs 4,30,776.97 crore. This accounts for 45.85 per cent of its total equity portfolio, providing context to its overall investment strategy .
