Govt to look into Ulip ban issue: Finance Secy
The Finance Ministry today said it will look into the orders of the two regulators - SEBI and IRDA - on equity linked products sold by 14 companies.business Updated: Apr 12, 2010 12:23 IST
The Finance Ministry today said it will look into the orders of the two regulators - SEBI and IRDA - on equity linked products sold by 14 companies.
"We need to look at both the orders internally and discuss it," Finance Secretary Ashok Chawla told reporters in New Delhi.
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.