Last week, state-owned Life Insurance Corporation said it has infused Rs 35,917.31 crore in debt and equity securities of Adani Group. file | Photo Credit: Reuters
Amid concerns in some quarters over LIC’s investment in 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 infused Rs 35,917.31 crore in debt and equity securities of Adani Group. This amount is 0.975% of the insurer’s total assets under management of over ₹41.66 lakh crore.
The total purchase value of equity purchased over the years under all Adani Group companies is ₹30,127 crore and has a market value of ₹56,142 crore at the close of market hours on January 27, 2023. LIC.
Minister of State for Finance Bhagwat Karad said, “LIC has informed that all investments of LIC are made strictly as per the statutory framework of Insurance Act, 1938 and IRDAI Investment Regulations, 2016 and are guided by an elaborate governance mechanism.” Rajya Sabha in a written reply on 7 February.
To a question by BJP member Sushil Kumar Modi regarding the stake held by LIC in various Adani Group companies, Mr Karad said, “LIC has also confirmed that most of the information regarding its investments is already in the public domain. Available in ,
Adani Group has 10 listed companies.
Shares of Adani group companies have plummeted, losing billions of dollars in market value, after US-based activist short-seller Hindenburg Research made a number of allegations, including fraudulent transactions and share price manipulation, in a January 24 report. Group led by Gautam Adani.
The Adani Group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements. Although the opposition is calling it a big fraud.
Concerns have also been raised in some quarters about LIC’s investment in Adani group companies.