The government today said the two regulators SEBI and IRDA have agreed to maintain the status quo that existed before market regulator’s ban on 14 life insurers from raising funds for unit-linked schemes. The status quo will be maintained till a court decides who can regulate ULIP schemes, Finance Minister Pranab Mukherjee told reporters here. ULIP is an insurance product in which a bulk of the premiums is invested in equities and bonds.
“To resolve any ambiguity and to ensure smooth functioning in the market, the regulators have agreed to jointly seek a binding legal mandate from an appropriate court,” Mukherjee said.
“Meanwhile, status quo ante is being restored,” he told reporters outside the finance ministry.
Mukherjee’s comments came after a series of meeting between Finance Ministry officials and IRDA Chairman J Hari Narayan SEBI chief C B Bhave.
Montek favours early solution to SEBI-IRDA spat
Planning Commission today said the spat between the two regulators– SEBI and IRDA– over an insurance product linked to the stock market should be quickly sorted out to clear investor confusion.
“When there are differences between the regulator they should be very quickly sorted out so that there is no uncertainty,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.
ULIPs– a common insurance plan sold by life insurers, where 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.
The government today said SEBI and IRDA have agreed to maintain status quo that existed before the market regulator’s ban on 14 life insurers from raising funds for unit-linked schemes.