Finance Minister Clarifies: LIC Makes Its Investment Decisions Independently

New Delhi, Dec 2025: Finance Minister Nirmala Sitharaman on Monday informed Parliament that the Finance Ministry does not issue any advisory or instructions to the Life Insurance Corporation of India (LIC) regarding the management or investment of its funds.

Responding to a question in the Lok Sabha, the Minister stated that LIC independently takes all investment decisions based on strict due diligence, comprehensive risk assessment and full fiduciary compliance. These decisions, she said, are guided by the provisions of the Insurance Act, 1938, as well as regulations framed by the Insurance Regulatory and Development Authority of India (IRDAI), the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).

Sitharaman noted that LIC’s portfolio predominantly comprises investments in the top 500 companies listed on the NSE and BSE. A substantial share of LIC’s current equity holdings is concentrated in the larger companies within this group. As of September 30, 2025, the book value of LIC’s equity investments in Nifty 50 companies stood at ₹4,30,776.97 crore, representing 45.85% of its total equity investment.

To ensure transparency and accountability, LIC’s investment operations undergo multiple layers of scrutiny. These include verification by concurrent auditors, statutory auditors, system auditors, Internal Financial Control (IFC) auditors and internal vigilance mechanisms. Additionally, IRDAI conducts periodic inspections of LIC’s investment activities.

Reiterating that LIC’s investment autonomy remains intact, the Finance Minister stressed that the government exercises no direct oversight over the insurer’s investment decisions.

Sitharaman also presented company-wise data on LIC’s equity exposure to major corporate groups. LIC’s total investment in Adani Group companies amounts to ₹38,658.85 crore as of September 30, 2025. This figure includes holdings in ACC Ltd and Ambuja Cements, which were acquired recently by the conglomerate.

Among private sector entities, LIC’s highest investment is in Reliance Industries Ltd, with equity holdings valued at ₹40,901.38 crore. This is followed by Infosys Ltd, where LIC has invested ₹38,846.33 crore. Other major investments include Tata Consultancy Services (₹31,926.89 crore), HDFC Bank (₹31,664.69 crore) and Hindustan Unilever Ltd (₹30,133.49 crore).

The Minister added that LIC also maintains significant investments across leading public sector enterprises such as State Bank of India (SBI), Coal India Ltd, ONGC, Punjab National Bank and the General Insurance Corporation of India, reflecting its diversified exposure across key sectors of the economy.

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