LIC gave clarification to the government on buying shares of Adani Group, rules were followed in investment

LIC Investment in Adani Stocks: The central government has presented a clarification in the Parliament amid concerns over investment in Adani Group’s shares. The government told the Parliament that the insurance company LIC (Life Insurance Corporation) has said that it strictly follows all the rules while making investments. Questions are constantly being raised by Life Insurance Corporation of India (LIC) regarding investment in Adani group companies and political attacks are also being made against the government.

In a written reply to a question asked by BJP MP Sushil Kumar Modi in the Rajya Sabha, Minister of State for Finance Bhagwat Karad said that LIC has informed that all its investments comply with the statutory framework of the Insurance Act, 1938 and the IRDAI Investment Regulations, 2016. They are carried out with strict compliance and are guided by the company’s operating system. He said that LIC has also clarified that most of the information regarding its investments is already publicly available.

On January 30, 2023, LIC had issued a statement clarifying the investment in Adani Group companies. LIC (LIC) has said that in the last several years, it has bought shares worth Rs 30,129 crore in the company of Adani Group, whose market value is Rs 56,142 crore on the basis of the closing price of January 27, 2023. According to LIC, the total value of its investment in Adani group companies till 31 December 2022, including shares and debt, was Rs 35917.31 crore. And till date LIC’s total investment in Adani group is Rs 36,474.78 crore.

LIC said that Adani Group has only 0.975 per cent of the book value of its total Asset Under Management. The total asset under management of LIC is Rs 41.66 lakh crore.

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