On Monday, Union Finance Minister Nirmala Sitharaman emphasized that the state-owned insurer's investments in Adani Group were done in accordance with established SOPs and stated that her ministry does not advise or instruct LIC regarding its investment decisions.
India’s largest insurer has, over the years, made investment selections across firms based on fundamentals and comprehensive due research.
Following thorough diligence as per established SOPs, it has bought shares across half a dozen listed firms of Adani Group, whose book value is at Rs 38,658.85 crore and invested another Rs 9,625.77 crore in loan instruments of the conglomerate.
“Ministry of finance does not issue any advisory/direction to LIC in connection with matters related to investment of LIC fund,” she said in a written reply to a question in Lok Sabha.
The investment decisions of the state-owned insurance, she said, are determined by “LIC alone following strict due diligence, risk assessment and fiduciary compliance”.
Such decisions are governed by provisions of Insurance Act, 1938, as well as rules published by IRDAI, RBI and Sebi (when relevant) from time to time, she said.
