Finance Minister Nirmala Sitharaman said the government did not issue any directions or advice to the Life Insurance Corporation of India (LIC) regarding its investments in the Adani Group. Responding to a question in the Lok Sabha, she emphasised that LIC’s decisions were made independently and in line with its standard operating procedures (SOPs).
Sitharaman said LIC has always made investment decisions based on company fundamentals, strict due diligence and regulatory norms. Over the years, the insurer has invested in several Adani Group companies after these checks. LIC currently holds shares worth ₹38,658.85 crore and debt worth ₹9,625.77 crore in various Adani firms.
She clarified that the Finance Ministry “does not issue any advisory or direction to LIC” on how it should invest its funds. Investment decisions, she said, are taken solely by LIC, governed by the Insurance Act, IRDAI rules, and regulations issued by SEBI and the RBI.
Her statement comes after a Washington Post report alleged that finance ministry officials pushed LIC to invest in the Adani Group earlier this year when the conglomerate was under global scrutiny. The report highlighted LIC’s ₹5,000-crore investment in secured non-convertible debentures of Adani Ports & SEZ in May 2025.
Sitharaman said the investment followed LIC’s due diligence process and board-approved policies. She added that LIC routinely invests in India’s largest companies. As of September 30, 2025, its investments in Nifty 50 firms amounted to ₹4.3 lakh crore, nearly 46% of its total equity portfolio.
The minister also detailed LIC’s internal oversight structure. Its investment operations are reviewed by concurrent auditors, statutory auditors, system auditors, internal vigilance teams, and are periodically inspected by IRDAI. “There is no direct oversight by the government on LIC’s investments,” she said.
Among private companies, LIC’s largest equity exposure is in Reliance Industries (₹40,901 crore), followed by Infosys, TCS, HDFC Bank, and Hindustan Unilever. Its biggest debt exposure is also with HDFC Bank (₹49,149 crore).
Within the Adani Group, LIC’s highest exposure is in Adani Total Gas (₹8,646 crore), ranking 25th among all its investments. Holdings in other Adani firms, including Adani Enterprises, Ambuja Cements, Adani Ports, Adani Energy Solutions, Adani Green Energy, and ACC fall further down the list.
Sitharaman also noted that LIC’s shareholdings of 1% or more in any listed company are already publicly available, as required under SEBI rules.
LIC, India’s largest institutional investor with assets of over ₹41 lakh crore, has repeatedly said its investments in the Adani Group were made independently, without any pressure from the Finance Ministry.
In an earlier statement, LIC said its decisions follow strict due diligence and comply fully with regulatory guidelines, adding that the Department of Financial Services “has no role” in its investment choices.
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