Life Insurance Corporation of India’s (LIC) investment in Gitanjali Gems has come under the lens of the Finance Ministry, reports say. The probe follows the sharp dip in prices of Gitanjali Gems’ shares and the interest LIC has taken to nevertheless invest in the company, reports add.

LIC’s holding in the gem and jewellery company has risen from 1.95 percent in the quarter ending September 20, 2012, to 4.36 percent in the quarter ending March, 31, 2013 to 4.89 percent in the quarter ending June 30, 2013, reports suggest.

Shares of Gitanjali Gems dipped from Rs 639 in April to around Rs 85 in three months, reports add. LIC’s share purchase is being viewed as the company's stock price rose unusually by over 100 percent in nine months upto April 2013, reports suggest.