Monday, April 12, 2010

Govt to look into Ulip ban issue

The Finance Ministry  said it will look into the orders of the two regulators -- SEBI and IRDA-- on equity linked products sold  by 14 companies.

ULIPs--a common insurance plan sold by life insurers, where the money collected from consumers is invested into equity and debt markets-- have become a bone of contention between the two financial regulators, with both claiming regulatory authority over the scheme.

Taking SEBI head on, insurance regulator IRDA had asked insurance firms to continue selling ULIPs, a day after the capital market watchdog barred 14 insurers from selling these products without its approval.

The companies, which come under the ban include Reliance Life, SBI Life, ICICI Prudential, Tata AIG and HDFC Standard Life.

Source: Economics Times


1 comment:

  1. "We want them to go to the court at the earliest. Finance Minister has mentioned status quo ante, which means that whatever prevailed before the date of the Sebi order will continue unhindered... that is what Sebi has said," Finance Secretary Ashok Chawla