New Delhi: Finance Minister Nirmala Sitharaman has clarified in a written reply to the Lok Sabha that the Life Insurance Corporation of India (LIC) makes all its investment decisions independently, following rigorous due diligence and internal procedures, and without any intervention from the Ministry of Finance. The clarification came in response to questions raised by MPs Dr. Mohammad Jawed and Mahua Moitra regarding LIC’s growing investment exposure in the Adani Group.
LIC Invested ₹5,000 Crore in APSEZ NCDs After Full Compliance
Sitharaman informed Parliament that LIC invested ₹5,000 crore in secured Non-Convertible Debentures (NCDs) issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025. She emphasized that the investment was undertaken only after LIC followed its Board-approved Standard Operating Procedures, completed all due diligence exercises, and adhered to the regulatory framework.
She reiterated that the Ministry of Finance does not issue instructions to LIC regarding investment decisions. LIC’s investment operations are governed by the Insurance Act, 1938, and regulated by IRDAI, RBI, and SEBI.
LIC’s Investment Framework Undergoes Multi-Layered Scrutiny
To ensure transparency and financial integrity, LIC’s investments are subject to several layers of review and auditing. These include oversight by:
- Concurrent Auditors
- Statutory Auditors
- System Auditors
- Internal Financial Controls (IFC) auditors
- Internal Vigilance Teams
- Periodic inspections by IRDAI
Sitharaman highlighted that LIC primarily invests in the top 500 listed companies on the NSE and BSE, with a strong concentration in large-cap stocks. As of September 30, 2025, LIC’s investment in Nifty 50 companies alone stood at ₹4,30,776.97 crore, representing 45.85% of its total equity investments.
LIC’s Exposure to the Adani Group Rises Sharply Over the Years
Data presented in Parliament shows a substantial rise in LIC’s exposure to Adani Group companies over the past decade and a half. As of September 30, 2025, LIC’s total equity and debt exposure to the Adani conglomerate reached ₹48,284.62 crore, compared to ₹2,041.60 crore in 2007.
Major investments include:
- Adani Total Gas – ₹8,646.82 crore
- Adani Enterprises – ₹8,470.60 crore
- Adani Ports & SEZ – ₹15,306.87 crore (including ₹9,625.77 crore in debt)
- Adani Green Energy – ₹3,486.10 crore
- Adani Energy Solutions – ₹3,729.68 crore
- Ambuja Cements – ₹5,787.73 crore
- ACC – ₹2,856.82 crore
Equity exposure alone stands at ₹38,658.85 crore.
Sitharaman noted that under SEBI norms, all listed companies must disclose shareholders owning 1% or more of their equity, ensuring that LIC’s major holdings remain transparent and publicly available.
LIC Maintains a Strong and Diversified Portfolio
Apart from the Adani Group, LIC’s overall portfolio reflects extensive diversification across public and private sector enterprises. As of September 30, 2025, LIC held:
- ₹9,39,493.77 crore in equity investments
- ₹4,64,741 crore in debt investments
In the public sector, its highest exposures include Power Finance Corporation, IRFC, REC, NHAI, and SBI.
In the private sector, major exposures include HDFC Bank, Reliance Industries, ICICI Bank, Shriram Finance, and Adani Ports.
Among equity holdings, the largest private-sector positions are Reliance Industries, Infosys, TCS, HDFC Bank, and Hindustan Unilever.
Adani Group’s Position in LIC’s Corporate Exposure Rankings
Several Adani Group companies feature prominently in LIC’s overall exposure rankings:
- Adani Total Gas – 25th
- Adani Enterprises – 27th
- Ambuja Cements – 40th
- Adani Ports & SEZ – 43rd
- Adani Energy Solutions – 65th
- Adani Green Energy – 71st
- ACC – 81st
The Finance Minister reiterated that despite the scale of these investments, LIC operates with strict adherence to regulatory norms, internal checks, and market guidelines, and that the government exercises no direct oversight over the corporation’s investment decisions.
