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Invested in ITC to improve returns of policyholders: LIC response to PIL

Insurer wants PIL rejected, says investments are routine, there is no rule banning them

Aneesh Phadnis  |  Mumbai 

Life Insurance Corporation of India
Life Insurance Corporation of India

Life Insurance Corporation (LIC) said on Friday that it has been investing in cigarette maker with the bonafide objective of enhancing returns for its policyholders, investors and in the interest of public welfare.

LIC, state insurers and the Centre have been dragged to the because of a (PIL) that questioned the government's investment in and other

While denying any contradictions with the government's tobacco control policies, LIC, in its affidavit, has said that there is no regulation banning investment in has said investments made in are through a secondary market that are routine in nature. The insurer has sought the petition's dismissal.

Public sector insurance and Specified Undertaking of United Trust of India (SUUTI) hold 32 per cent stake in

Sumitra Pednekar, wife of former home minister Satish Pednekar, Dr Pankaj Chaturvedi, a surgeon at Tata Memorial Hospital and R Venkataramanan, managing trustee, Tata Trusts (in his individual capacity) filed a in April against the government's investment in

Their main plea is that the government holding in violates its own The government stake is held through public sector insurance

The high court made the Securities and Exchange Board of India (Sebi) a party to the petition in the same month.

The stock market regulator, however, has sought to distance itself from the issue. In its affidavit that was filed on Friday, said that petitioners have neither prayed for any relief against it nor alleged its involvement in the share ownership.

is a body functioning in the interest of investors and is responsible for regulating deals in the securities market, said the regulator, adding that no issue has been raised in the against it. "is neither a necessary nor a proper party for the present proceeding," it said and requested the court to exclude it from list of respondents.

First Published: Sat, June 24 2017. 02:01 IST