In a piquant situation, insurance regulator Irda on saturday rejected the market regulator Sebi’s ban on life insurance companies from raising funds through unit-linked insurance policies and asked them to do business as usual. Taking Sebi head on in the turf war over who would administer Ulip (unit-linked insurance products) scheme, Irda, in a surprise order, told the 14 affected life insurance companies that it has set aside the Sebi ban.
Sebi chairman CV Bhave nor its spokesperson could be contacted for comments.
The Irda order comes within 24 hours of Sebi banning 14 life insurers, including those belonging to the Tatas, Reliance Anil Ambani Group, SBI, ICICI Bank and HDFC among others from raising the funds through Ulips.
