Why Did LIC Invest in Adani Group? Finance Minister Nirmala Sitharaman Responds

New Delhi: The opposition has repeatedly questioned the government over LIC’s investments in the Adani Group, especially after Hindustan Hindenburg Research reports led to a sharp fall in Adani shares. Recent media reports, including one from The Washington Post, suggested that government officials may have encouraged LIC to invest in the group.

Finance Minister Nirmala Sitharaman, however, clarified the government’s position on Monday. She stated that the Ministry of Finance does not issue any advice or directives to LIC regarding its investment decisions. She emphasized that LIC’s investments in the Adani Group were made strictly according to established Standard Operating Procedures (SOPs).

LIC, India’s largest institutional investor, has made investment decisions over the years based on thorough due diligence and well-defined processes. According to the Finance Minister’s written reply in the Lok Sabha, LIC has purchased shares in half a dozen listed Adani companies, with the total investment amounting to ₹38,658.85 crore.

How Are Investment Decisions Made?
Sitharaman highlighted that the Ministry of Finance does not interfere in LIC’s investment matters. Such decisions are governed by the Insurance Act, 1938, as well as rules issued by IRDAI, RBI, and SEBI. Addressing the claims in The Washington Post report, she said there was no government directive encouraging LIC to invest in Adani.

LIC followed its board-approved policies and SOPs before making a ₹5,000 crore investment in secured non-convertible debentures (NCDs) issued by Adani Ports Special Economic Zone (APSEZ) in May 2025. The Finance Minister added that LIC has invested in the top 500 listed companies on NSE and BSE, with a major portion of its portfolio held in large-cap companies.