LIC Slams Washington Post Report As ‘False And Baseless,’ Denies External Influence On Investments
Life Insurance Corporation of India has issued a rebuttal denying a recent report by The Washington Post that alleged its investment decisions, particularly concerning the Adani Group, are influenced by external factors or were guided by a roadmap drafted by Indian officials.
Background of the Report
The Washington Post report had suggested that Indian officials drafted a proposal in May to steer roughly $3.9 billion in investments from the state-owned insurer to Adani Group companies. However, LIC has categorically stated that the allegations leveled by the American daily are ‘false, baseless, and far from truth.’
LIC’s Denial and Reaffirmation of Autonomy
The insurer went on to deny the core of the report, affirming that ‘No such document or plan as alleged in the article has ever been prepared by LIC, which creates a roadmap for infusing funds by LIC into Adani group of companies.’
In a move to reaffirm the integrity and autonomy of its internal governance, LIC clarified the rigorous process behind its investment decisions. The company stated that ‘Investment decisions are taken by LIC independently as per Board approved policies after detailed due diligence.’ For more information on investment decisions, visit our website.
No External Interference in Investment Decisions
LIC refuted any external interference, stating unequivocally that the ‘Department of Financial Services or any other body does not have any role in such decisions.’ This statement underscores LIC’s position that its multi-billion dollar investment portfolio is managed solely through internal expertise and established corporate policy.
For investors looking to make informed decisions, it’s essential to understand the importance of due diligence in investment decisions.
Assurance to Policyholders and Stakeholders
LIC further assured its policyholders and stakeholders that it has ‘ensured highest standards of due diligence’ and that all its investment decisions have been undertaken in full compliance with extant policies, statutory provisions in the Acts, and regulatory guidelines. The focus, it maintained, remains on acting ‘in the best interest of all its stakeholders.’
To learn more about regulatory guidelines in India, visit our website.
Intent to Harm and Rebuttal
Concluding its statement, LIC suggested that the Washington Post article was intended to cause deliberate harm, asserting that the purported statements ‘appear to have been made with the intentions 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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Conclusion
In conclusion, LIC’s denial of the Washington Post report reaffirms the company’s commitment to autonomy and integrity in its investment decisions. As a state-owned insurer, LIC’s investment portfolio plays a significant role in the Indian economy, and its assurance to policyholders and stakeholders is crucial in maintaining trust and stability in the market.
For more information on investment portfolio management, visit our website.
