Finance Minister Confirms LIC's Adani Investments Follow Standard Procedures Without Ministry Interference

Finance Minister Nirmala Sitharaman clarified on Monday that the Ministry of Finance does not issue any advisories or directions to Life Insurance Corporation of India (LIC) regarding its investment decisions. She emphasized that LIC's investments in Adani Group companies were executed according to established standard operating procedures.

India's largest insurer has consistently made investment decisions across various companies based on fundamental analysis and comprehensive due diligence. Following these established protocols, LIC has acquired shares in approximately six listed Adani Group companies, with the book value standing at Rs 38,658.85 crore. Additionally, the insurer has invested Rs 9,625.77 crore in debt instruments issued by the conglomerate.

"The Ministry of Finance does not issue any advisory/direction to LIC in connection with matters related to investment of LIC fund," Sitharaman stated in her written response to a question raised in Lok Sabha.

She emphasized that investment decisions by the state-owned insurer are made "by LIC alone following strict due diligence, risk assessment and fiduciary compliance." These decisions adhere to provisions outlined in the Insurance Act, 1938, along with regulations established by the Insurance Regulatory and Development Authority of India (IRDAI), Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) where applicable.

The Finance Minister's statement comes after an October report in The Washington Post alleged that finance ministry officials had orchestrated a plan to direct LIC's investments into the Adani group earlier this year when the ports-to-energy conglomerate was facing debt challenges and scrutiny in the United States. The report specifically highlighted LIC's May 2025 investment of USD 570 million (approximately Rs 5,000 crore) in Adani Ports & SEZ (APSEZ).

Addressing this specific investment, Sitharaman confirmed, "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 further noted that LIC has investments in the top 500 companies listed on NSE and BSE, with a significant portion concentrated in larger companies within this group. "Book value of LIC's investment in Nifty 50 companies, as on September 30, 2025, is Rs 4,30,776.97 crore which is 45.85 per cent of its total equity investment," she revealed.

Elaborating on the oversight mechanisms, Sitharaman explained that LIC's investment functions undergo verification by concurrent auditors, statutory auditors, system auditors, internal financial control (IFC) auditors, and an internal vigilance team. "Periodical inspections are also conducted by the sector Regulator IRDAI in this regard," she added, emphasizing that "There is no direct oversight by the Government on investments made by LIC."

Among private firms, LIC's highest equity investment stands at Rs 40,901.38 crore in Reliance Industries Ltd, followed by Rs 38,846.33 crore in Infosys, Rs 31,926.89 crore in Tata Consultancy Services, Rs 31,664.69 crore in HDFC Bank, and Rs 30,133.49 crore in Hindustan Unilever.

Similarly, LIC's largest debt exposure in the private sector is with HDFC Bank, totaling Rs 49,149.14 crore. This is followed by Rs 14,012.34 crore in Reliance Industries, Rs 13,435 crore in ICICI Bank, Rs 11,075 crore in Shriram Finance, and Rs 9,625.77 crore in Adani Ports and SEZ Ltd.

Within the Adani Group companies, LIC's highest exposure is Rs 8,646.82 crore in CNG retailer Adani-Total Gas Ltd, ranking 25th in LIC's overall investment portfolio. The exposure in Adani Enterprises stands at Rs 8,470.60 crore (ranked 27th), Rs 5,787.73 crore in Ambuja Cements (ranked 40th), Rs 5,681.10 crore in APSEZ (ranked 43rd), Rs 3,729.68 crore in Adani Energy Solutions Ltd (ranked 65th), Rs 3,486.10 crore in Adani Green Energy Ltd (ranked 71st), and Rs 2,856.82 crore in ACC (ranked 81st).

"As per SEBI guidelines, all listed companies must disclose the names of shareholders holding 1 percent or more of the company's shares. Accordingly, information about companies where LIC holds a 1 percent or greater equity stake is available in the public domain," she added.

LIC is not a small, specialized fund but rather India's largest institutional investor with assets exceeding Rs 41 lakh crore (over USD 500 billion). It maintains investments across 351 publicly listed stocks (as of early 2025), encompassing virtually every major business group and sector. The value of its investments in India's top 500 companies has increased tenfold since 2014 – from Rs 1.56 lakh crore to Rs 15.6 lakh crore – demonstrating robust fund management.

Additionally, LIC holds substantial government bonds and corporate debt, with a highly diversified portfolio designed to spread risk. LIC's exposure to the Adani group represents less than 2 percent of the total debt of the conglomerate led by India's second-richest individual, Gautam Adani.

Following The Washington Post's report, LIC had issued a statement on social media platform X affirming that its investments in Adani group companies were made independently and in accordance with board-approved policies after thorough due diligence. "The Department of Financial Services (in the Union Finance Ministry) or any other body does not have any role in such (investment) decisions," LIC had stated. "The investment decisions are taken by LIC independently as per Board-approved policies after detailed due diligence. LIC has ensured the highest standards of due diligence and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts and regulatory guidelines, in the best interest of all its stakeholders."

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)