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LIC Expert Reveals Truth: How Robust Regulations Defend Against False Claims

A senior legal expert has strongly defended LIC's investment processes against false media claims. Sanjay Asher emphasized that LIC operates with robust regulations and established committees rather than individual whims. The corporation follows strict due diligence for both policyholder and shareholder investments. These clarifications come amid misleading reports about LIC's investment practices.

Key Points: LIC Not Run by Whims Has Robust Investment Regulations Expert

  • LIC operates under strict IRDAI regulation with established investment committees
  • Investments undergo thorough due diligence for policyholder protection
  • Expert defends Adani Group investments noting multiple international investors
  • Washington Post allegations aim to tarnish LIC's settled decision-making process
2 min read

LIC not run by someone's whims and fancies, has robust regulations in place: Expert

Senior legal expert Sanjay Asher defends LIC's investment process, highlighting robust regulations and due diligence amid false media allegations.

"It's not an ad hoc institution. It is not being run by someone's whims and fancies - Sanjay Asher"

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".

- IANS

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Reader Comments

S
Sarah B
As an NRI, I've always trusted LIC with my family's investments. Their track record speaks for itself. Western media needs to do better research before making such allegations.
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Rohit P
Good to see LIC standing up against false narratives. But I do wish they were more transparent about their investment decisions. Public has the right to know where their money is going.
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Arjun K
LIC is a Maharatna company with crores of policyholders. They don't make investments lightly. This is just another attempt to undermine Indian institutions. Shame on Washington Post!
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Michael C
Working in finance sector here in Mumbai, I can confirm LIC follows strict protocols. Their investment committee includes some of the brightest minds in Indian finance.
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Nisha Z
My father retired with LIC pension and it's been our family's financial security. These foreign media reports create unnecessary panic among common people. Baseless allegations! 😠
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Karthik V
While I trust LIC's processes, I hope they maintain the same rigorous standards for all investments. The Adani connection does raise questions that need proper addressing, not just denial.

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