New Delhi: Life Insurance Corporation of India (LIC) has confirmed that “most information with regard to its investments is available in public domain”, Parliament was informed on February 7.
Stating this in Rajya Sabha, the Union Minister of State for Finance Dr Bhagwat Karad said, “It has informed that all investments are carried out strictly as per the Insurance Act, 1938 & the IRDAI Investment Regulations, 2016 and guided by a detailed governance mechanism”.
He was replying to questions from BJP member Sushil Kumar Modi.
The Minister said LIC’s total holding under equity and debt is Rs. 35,917.31 crores as on December 31, 2022, “under Adani group of companies”.
The total purchase value of equity, purchased over the last many years, under all the Adani group companies is Rs 30,127 crores and the market value for the same as at close of market hours on January 27 was Rs 56,142 crores.
“Further, the total Assets Under Management (AUM) by LIC are over Rs. 41.66 lakh crore as at 30.09.2022. Therefore, LIC’s exposure in the Adani group, as of date, is 0.975% of LIC’s total AUM at book value,” the Minister said.
Among other things, BJP member Sushil Modi also held a portfolio of Finance in Bihar and wanted to know about the stakes held by LIC in Adani Group, the value of LIC’s holdings in Adani Group, dividends of LIC from equity investments in the business house run by Gautam Adani.
Sushil Modi also wanted to know about the trends of LIC investments in Adani Ports.
After three days of logjam on the Adani Group issue, most opposition parties decided to participate in Parliament proceedings from February 7.
The popular business house Adani Group has seen its market value plunge after a US investment firm made specific allegations against it.
Of course, the Adani Group has denied the allegations, calling them “malicious” and “baseless”. It also said the business and investment plans have not changed.
The ‘Short seller’ Hindenburg Research accused the group of “brazen” stock manipulation. It is reported that the group’s founder Gautam Adani has seen billions wiped off his personal wealth and has dropped out of the list of the world’s top 20 wealthiest people.
However, analysts will be keen to see how the stock price slide affects the company’s operations, cash flow and related expansion plans.
The opposition leaders have been raising the Adani issue in Parliament from the beginning of the Budget session.
There is, however, another story; experts say the controversy has been kicked off when many developed economies are on the verge of recession and braving odds, India continues to progress.
In this background, it is being observed that the Hindenburg research could be a well-organised “conspiracy” against India and its growth trajectory.