LIC already clarified their exposure in Adani Group: DIPAM Secy

Life Insurance Corporation of India (LIC) invests in equities taking into account the inherent risk as per its risk management framework, said Tuhin Kant Pandey, secretary at the Department of Investment and Public Asset Management (DIPAM). “LIC has already made it clear and through a public notice of what are their level of investments and what is value is on a particular date of those investments,” he said in an exclusive interview, referring to a recent statement by LIC. LIC, on January 30, said the total value of Adani group company shares it has purchased over the last many years is Rs 30,127 crore, and the market value of them is at Rs 56,142 crore as on January 27. The total assets under management (AUM) of LIC are over Rs 41.66 lakh as of September 30, 2022. Therefore, LIC’s exposure in the Adani group, as of date, is 0.975 per cent at book value, the insurance major said. “LIC can invest in equities because of inherent risk and as per the risk management framework. And within the overall framework of IRDAI which is the regulator,” he told ANI. In response to a question on the ongoing plunge in Adani Group companies’ shares, Pandey said, “They go into the safe government securities called Gsecs and they also have some rated bonds and equity also they invest they have their investment strategy of going into different things and they have a concentration risk portfolio benchmarks.” However, he said he was not looking into the Adani Group matter as the subject is not within his remit to comment on any private company, as DIPAM deals with central public sector enterprises.