A day after the finance ministry brokered a truce between two financial sector regulators, SEBI today said any new ULIP scheme launched after April 9, 2010 by insurance companies will remain covered by its earlier ban order.
“…with respect to any new ULIP schemes/products launched after April 9, 2010, the directions mentioned in the said order (that banned 14 life insurance companies from launching ULIPs) will be enforced as indicated therein,” said an order by the Securities and Exchange Board of India (SEBI).
The market regulator, however, clarified that SEBI has decided to keep in abeyance, till further notice, its order concerning the ongoing ULIP schemes.
“This is to bring to the notice of the investors that SEBI has decided to keep in abeyance, till further notice, the enforcement of the above direction with respect to any new ULIP schemes/products existing on the date of the order”, it said.
Does the ban apply to new ULIP schemes or even to new investments under existing ULIP schemes?
Excellant, these kind of schemes are infact responsible for the hike of prizes of property and essential commodities. Therefore the SEBI will have to ban the ULIP forevere, in the opinion of the undersigned.