Finance Minister Nirmala Sitharaman on Monday clarified that the Finance Ministry does not issue any directives to the Life Insurance Corporation of India (LIC) regarding its investment decisions. She affirmed that the state-owned insurer’s exposure to the Adani Group was made strictly in accordance with its board-approved standard operating procedures.
LIC, India’s largest insurer, has historically relied on company fundamentals and thorough due diligence to guide its investment strategy. Following these protocols, the insurer has invested in about half a dozen listed Adani Group companies — with a combined book value of Rs 38,658.85 crore — and has committed an additional Rs 9,625.77 crore to the group’s debt instruments.
“The Ministry of Finance does not issue any advisory or direction to LIC in connection with matters related to investment of LIC funds,” Sitharaman stated in a written reply in the Lok Sabha. She added that all investment decisions are taken independently by LIC, based on “strict due diligence, risk assessment and fiduciary compliance.”
Sitharaman noted that LIC’s investment decisions are governed by the Insurance Act, 1938, and regulatory frameworks set by IRDAI, the RBI, and SEBI, wherever relevant.
As of September 30, 2025, LIC’s investment in Nifty 50 companies stood at Rs 4,30,776.97 crore, accounting for 45.85% of its total equity portfolio.
The minister further highlighted that LIC’s investment processes are subject to multiple layers of oversight, including concurrent, statutory, and systems audits, IFC reviews, internal vigilance checks, and IRDAI inspections. “There is no direct oversight by the Government on investments made by LIC,” she stressed.
Listing the insurer’s largest private-sector exposures, she said LIC’s biggest equity holding is in Reliance Industries (Rs 40,901.38 crore), followed by Infosys, TCS, HDFC Bank, and Hindustan Unilever. On the debt side, its highest exposure is to HDFC Bank at Rs 49,149.14 crore.