Does the Indian Finance Ministry control LIC's investments?

No, the Finance Ministry explicitly stated it does not issue any advisory or direction to LIC on investment matters.

How does LIC make investment decisions?

LIC makes investment decisions independently, following strict due diligence and risk assessment.

What regulations govern LIC's investments?

LIC's investments are governed by the Insurance Act, 1938, and regulations from Irdai, RBI, and Sebi.

Home / Business and Economy / FM Clarifies LIC Investment Independence

FM Clarifies LIC Investment Independence

1 Dec

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Summary

Finance Ministry denies issuing investment advice to LIC.
LIC makes investment decisions independently with due diligence.
LIC operates under strict regulatory frameworks.

FM Clarifies LIC Investment Independence

The Finance Ministry does not influence or direct the investment strategies of the Life Insurance Corporation of India (LIC), stated Finance Minister Nirmala Sitharaman. She reassured Parliament that LIC functions as an independent entity, particularly in its investment choices.

Sitharaman detailed that all investment decisions undertaken by LIC are made solely by the corporation. This process involves rigorous due diligence, comprehensive risk assessment, and strict adherence to fiduciary responsibilities, ensuring compliance with all relevant laws and regulations.

The state-run insurer's operations and investment activities are governed by the Insurance Act of 1938. Furthermore, LIC must comply with regulations issued 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), where applicable.