State-run Life Insurance Corporation (LIC), India's largest insurer, is reviewing Adani Group's response to scathing criticism by a US short-seller and will hold talks with the group's management within days.

LIC has invested more than $4 billion in the group, which has lost about $66 billion since Hindenburg Research flagged concerns early last week about the business house's debt levels and the use of tax havens.

Adani, founded by Asia's richest person, Gautam Adani, says it complies with all local laws and has made the necessary regulatory disclosures.

"Presently there is a situation that's emerging and we are not sure what is the factual position ... Since we are a large investor, we have the right to ask relevant questions and we will definitely engage with them,” LIC Managing Director Raj Kumar told Reuters.

LIC says it has invested 364.7 billion rupees ($4.47 billion) in Adani companies, about 1% of its assets under management.

"Of course, we are studying the 413-page reply given by Adani Group,” Kumar said on Monday about the group's response to concerns raised by Hindenburg.

"We will also see if the concerns are addressed. If we believe the concerns are not addressed, we will seek further clarification from them.”

LIC owned a 4.23 per cent stake in the flagship Adani Enterprises as of end-December, more than 9 per cent in Adani Ports and Special Economic Zone, nearly 6 per cent in Adani Total Gas and 3.65 per cent in Adani Transmission, data from the Bombay Stock Exchange shows.

Kumar's comments came after Adani said in a statement late on Sunday that its “strategic and long-term investors have reposed complete faith and confidence in the group”.

Kumar said that LIC looks at “the long-term view unless there is something going very bad”.

"Presently, we don't see any kind of this thing,” he said of Adani.

"We have to gather all the information, clarifications; and a further call will be taken after that. The decision will also be based on an independent risk-assessment, internal risk-assessment, business profile and growth trajectory.”