FM Sitharaman Rejects Claims Of Govt Influence On LIC; Says Adani Investments Followed Strict SOPs

Finance Minister Nirmala Sitharaman on Monday firmly rejected claims that the Finance Ministry influenced the Life Insurance Corporation of India (LIC) in making investment decisions. She told the Lok Sabha that her ministry does not issue instructions or advisories to LIC.

FM Sitharaman stressed that LIC’s investments in Adani Group companies followed its own rigorous procedures and board-approved norms.

India’s largest insurer has historically invested based on company fundamentals and detailed scrutiny.

LIC conducted due diligence in accordance with established Standard Operating Procedures before purchasing shares in multiple Adani Group firms.

These holdings now carry a book value of Rs 38,658.85 crore. LIC has also invested Rs 9,625.77 crore in Adani Group’s debt instruments.

FM Sitharaman reiterated this autonomy in her written reply, “The Ministry of Finance does not issue any advisory/direction to LIC in connection with matters related to investment of LIC fund,” she said.

She further added that LIC alone makes investment decisions after following ‘strict due diligence, risk assessment and fiduciary compliance’.

FM Sitharaman said these decisions comply with the Insurance Act, 1938, and rules set by IRDAI, RBI and SEBI. She underlined that LIC adheres to all regulatory requirements.

Her remarks followed a Washington Post report alleging that Finance Ministry officials pushed LIC to increase exposure to the Adani Group earlier this year, when the conglomerate faced scrutiny in the United States.

FM Sitharaman Refutes Allegations

The report highlighted LIC’s investment of USD 570 million (about Rs 5,000 crore) in Adani Ports & SEZ (APSEZ) in May 2025.

FM Sitharaman addressed this directly: “LIC has invested Rs 5,000 crore in secured non-convertible debentures (NCD) issued by Adani Ports Special Economic Zone (APSEZ) in May 2025, after doing due diligence following established Standard Operating Procedures (SOPs) as per their Board-approved policies.”

She noted that LIC invests across the top 500 companies listed on the NSE and BSE.

A major share of its portfolio rests in large, stable firms. As of September 30, 2025, LIC’s book value in Nifty 50 companies stands at Rs 4,30,776.97 crore, equal to 45.85 per cent of its total equity investment.

FM Sitharaman highlighted LIC’s extensive audit and oversight framework.

Concurrent auditors, statutory auditors, system auditors, internal financial control teams and vigilance units regularly monitor operations.

IRDAI conducts additional inspections. “There is no direct oversight by the Government on investments made by LIC,” she said.

Among private companies, LIC’s largest equity exposure is in Reliance Industries at Rs 40,901.38 crore.

Infosys, TCS, HDFC Bank and Hindustan Unilever follow. On the debt side, HDFC Bank tops the list with Rs 49,149.14 crore in exposure.

LIC’s exposure to the Adani Group remains diversified and relatively moderate. The insurer holds the most Rs 8,646.82 crore in Adani Total Gas.

Other Adani companies rank lower in LIC’s portfolio. She said LIC is India’s largest institutional investor, managing assets above Rs 41 lakh crore.

It invests across 351 listed companies and holds a wide mix of equities, corporate bonds and government securities.

Its exposure to the Adani Group is less than 2 per cent of the conglomerate’s total debt.

LIC, in its earlier response to the Washington Post report, said all investments follow board-approved policies and detailed due diligence, with no role played by the Finance Ministry.

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