Finance minister Nirmala Sitharaman on Monday said that the government has not issued any advisory or direction to Life Insurance Corporation of India (LIC) regarding its investments in the Adani group, asserting that the state-owned insurer acts independently and follows rigorous due diligence norms.
Responding to a question in the Lok Sabha on Monday, Sitharaman said LIC’s investment decisions are governed by its board-approved policies and standard operating procedures, backed by regulatory frameworks.
“The ministry of finance does not issue any advisory/direction to LIC in connection with matters related to the investment of the LIC fund. The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment and fiduciary compliance and are governed by the provisions of the Insurance Act, 1938, as well as regulations issued by the IRDAI, the RBI and Sebi (wherever applicable) from time to time,” the written reply said.
The query from members of Parliament Mohammad Jawed and Mauhua Moitra comes amid a recent Washington Post report that had suggested government officials influenced LIC’s exposure to the Adani group, which was denied by the country’s largest life insurance company.
As of September 30, LIC’s book value of equity holdings in listed Adani firms stands at ₹38,658.85 crore, besides a debt investment of ₹9,625.77 crore. It also invested ₹5,000 crore in secured non-convertible debentures of Adani Ports & SEZ in May 2025 after internal evaluation. Sitharaman highlighted that LIC’s portfolio remains diversified, with a substantial concentration in large-cap firms.