LIC’s Distinct Voting Pattern on Reliance and Adani Resolutions Highlights Institutional Nuance

In the first half of FY 2025-26, LIC, India’s largest institutional investor, voted in favor of 97% of shareholder resolutions, including those by major corporate groups like Reliance and Adani. However, unlike many mutual funds and foreign portfolio investors that tended to universally support promoter-backed resolutions, LIC displayed selectivity by dissenting or abstaining on sensitive matters such as certain related party transactions (RPTs), board changes, and remuneration proposals.

LIC’s approach shows an attempt to balance its role as a promoter and fiduciary investor by endorsing growth-oriented resolutions while maintaining scrutiny over governance-sensitive issues. For example, while LIC backed most of Reliance’s resolutions, it abstained on some RPTs where it had a direct related-party interest. Similarly, in Adani group votes, LIC’s voting reinforced confidence but occasionally diverged from the broad institutional consensus on matters requiring heightened scrutiny.

Compared to other institutional investors who voted in favor around 88% of the time with minimal abstentions, LIC’s marginally higher dissent rate is attributed to its vast stake, regulatory stewardship, and risk management framework. This nuanced voting behavior highlights LIC’s commitment to corporate governance while supporting India’s industrial growth narrative.

Key Highlights

LIC voted in favor of 97% of resolutions, against 1%, abstained in 2% during H1 FY 2025-26

Selective dissent/abstentions on related party transactions and governance-sensitive proposals at Reliance and Adani

LIC maintains a unique balance between promoter support and governance scrutiny

Other mutual funds and FPIs showed 88% favorable voting with virtually no abstentions post-SEBI mandate

Abstentions mainly occurred due to LIC’s related-party interests or regulatory compliance

LIC’s voting strategy contrasts with broader institutional investors, highlighting fiduciary responsibility

Reflects LIC’s dual role as promoter and largest institutional shareholder ensuring prudent governance

Source: Economic Times, PRIME Database Group (Primeinfobase), Securities & Exchange Board of India releases​