Exclusive: India's LIC plans investment exposure caps post Adani share rout- sources

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The Life Insurance Corp. of India (LIC) is planning to impose caps on its debt and equity exposure to companies, two sources said, in a bid to lower concentration of risk following criticism of its investment in Adani group companies.

Life Insurance Corporation of India logo is seen displayed on a smartphone in this illustration taken February 20, 2022. REUTERS/Dado Ruvic/Illustrationis planning to impose caps on its debt and equity exposure to companies, two sources said, in a bid to lower concentration of risk following criticism of its investment in Adani group companies.

"LIC is looking to have 'boundary conditions' on its investments that would limit its exposure to scrips," said the source. The Insurance Regulatory and Development Authority of India also bars insurers from having more than 15% of their investment funds in equity and debt of companies owned by one corporate or a promoter group.

"It is now planning to come up with sub-limits for such investments to keep a check on its exposure," the source said.

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Exclusive: India's LIC plans investment exposure caps post Adani share routThe Life Insurance Corp. of India (LIC) is planning to impose caps on its debt and equity exposure to companies, two sources said, in a bid to lower concentration of risk following criticism of its investment in Adani group companies.
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