Mumbai, Oct 27 The Life Insurance Corporation of India (LIC) is not an ad hoc institution -- being run by someone’s whims and fancies -- but has robust rules and regulations in place before making any investment, Sanjay Asher, a senior partner at law firm Crawford Bayley and Co, said on Monday.
Speaking to IANS after The Washington Post spread false information, factual inaccuracies, misleading claims and false narratives via its article, Asher said that LIC is one of the largest investors, both in equity and debt instruments, in the country.
"It has been in existence for several years. It is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). LIC has its own board, investment committee, rules, regulations, criteria, checks and balances for making investments in several instruments, both in debt and equity. It's not an ad hoc institution. It is not being run by someone's whims and fancies," said Asher.
LIC invests both policyholders' money and the shareholders' money after due diligence.
On the LIC-Adani Group link, as alleged by the US media outlet, he further stated that once you grow big and become a leading business or industrial house, then obviously everybody is watching you and will find out some or the other fault in what you are doing.
"Here, Adani has not done anything wrong," said Asher.
"It is not that only LIC is an investor (in Adani Group). As I understand, there are many international investors who have invested in the equity and debt instruments of Adani group entities," Asher noted.
LIC has already denied false reporting by The Washington Post, reaffirming that all investments are made with integrity and due diligence. LIC said that these purported statements in the article "appear to have been made with the intention to prejudice the well-settled decision-making process of LIC and also to tarnish the reputation and image of LIC and the strong financial sector foundations in India".
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