No direction to LIC on Adani investments; all decisions based on SOPs, Govt tells Lok Sabha

Finance Minister Clarifies LIC's Investment Decisions

On Monday, Finance Minister Nirmala Sitharaman clarified that the Finance Ministry does not issue directives to the Life Insurance Corporation of India (LIC) regarding its investment decisions.

LIC's Investment Strategy

LIC, India's largest insurer, has historically relied on company fundamentals and thorough due diligence to guide its investment strategy.

• LIC invests in listed Adani Group companies with a combined book value of Rs 38,658.85 crore.
• LIC has committed an additional Rs 9,625.77 crore to the group's debt instruments.

Ministry of Finance's Stance

According to Finance Minister Nirmala Sitharaman, the Ministry of Finance does not issue any advisory or direction to LIC in connection with matters related to investment of LIC funds.

"The Ministry of Finance does not issue any advisory or direction to LIC in connection with matters related to investment of LIC funds," Sitharaman stated in a written reply in the Lok Sabha.

She added that all investment decisions are taken independently by LIC, based on "strict due diligence, risk assessment, and fiduciary compliance."

Regulatory Frameworks

LIC's investment decisions are governed by the Insurance Act, 1938, and regulatory frameworks set by IRDAI, the RBI, and SEBI, wherever relevant.

Investment Breakdown

As of September 30, 2025, LIC's investment in Nifty 50 companies stood at Rs 4,30,776.97 crore, accounting for 45.85% of its total equity portfolio.

Oversight Mechanisms

The minister further highlighted that LIC's investment processes are subject to multiple layers of oversight, including:

• Concurrent, statutory, and systems audits.
• IFC reviews.
• Internal vigilance checks.
• IRDAI inspections.

"There is no direct oversight by the Government on investments made by LIC," she stressed.