Amid concerns in certain quarters over LIC’s exposure to Adani Group companies, the government on February 7 said the insurer has informed that it strictly follows the statutory framework and regulations while making investments.
Last week, state-owned Life Insurance Corporation (LIC) said it has investments of ₹35,917.31 crore in Adani Group’s debt and equity securities. The amount is 0.975% of the insurer’s total assets under management of more than ₹41.66 lakh crore.
The total purchase value of equity, purchased over the last many years, under all the Adani Group companies is ₹30,127 crore and the market value for the same as at close of market hours on January 27, 2023, was ₹56,142 crore, as per LIC.
“LIC has informed that all investments of LIC are carried out strictly as per the statutory framework of the Insurance Act, 1938 and the IRDAI Investment Regulations, 2016 and are guided by a detailed governance mechanism,” Minister of State for Finance Bhagwat Karad told the Rajya Sabha in a written reply on Feb. 7.
To a question by BJP member Sushil Kumar Modi regarding the stakes held by LIC in various companies of the Adani Group, Mr. Karad said, “LIC has also confirmed that most of the information with regard to its investments is already available in the public domain.”
Also Read | Warning bells: On the Adani saga
Adani Group has 10 listed companies.
Stocks of the Adani Group companies have taken a beating, losing billions of dollars in market value, after U.S.-based activist short-seller Hindenburg Research in a report dated January 24 made a litany of allegations, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.
The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. The opposition, however, has been calling it a big fraud.
Concerns have also been raised in certain quarters about LIC’s investments in Adani Group companies.