Centre doesn’t advise LIC, its Adani stake as per norms: FM

Finance Minister Nirmala Sitharaman on Monday informed the Parliament that the Finance Ministry did not issue any directives to the Life Insurance Corporation of India (LIC) regarding its investment decisions.

In response to a starred question by TMC MP Mahua Moitra in Lok Sabha, who sought to know whether any directions or advisories were issued by the ministry or Department of Financial Services (DFS) to LIC or other public-sector financial institutions to invest in Adani group companies, Sitharaman clarified that the state-owned insurer's investment decisions were taken independently, following strict due diligence, risk assessment and fiduciary compliance, and were governed by the provisions of the Insurance Act, 1938, as well as regulations issued by Irdai, the RBI and SEBI.

LIC, India’s largest insurer, has historically relied on company fundamentals and thorough due diligence to guide its investment strategy. Following these protocols, the insurer has invested in about half a dozen listed Adani Group companies — with a combined book value of Rs 38,658.85 crore — and has committed an additional Rs 9,625.77 crore to the group’s debt instruments, she informed further.

“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 to the starred question, which could not be taken up in Lok Sabha owing to a truncated Question Hour due to protests by Opposition.

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

The minister further pointed out that LIC’s investment processes were subject to multiple layers of oversight, including 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,” she explained further.