Even as SEBI and IRDA have decided to approach court to seek direction on regulating ULIPs, a public interest litigation (PIL) has been filed in the Bombay High Court, seeking reversal of SEBI’s ban on sale of ULIPs by the insurance companies.
The petition, filed by Rajesh Thacker, a Mumbai-based businessman, is expected to come up for hearing on April 15.
The petitioner has claimed that lakhs of investors in the country are “suffering anxiety and uncertainty about their investments” due the order passed by the SEBI.
The insurance regulator IRDA too has been made a party to the PIL. Pending the hearing of PIL, SEBI as well as IRDA be directed to issue a public notice “before passing orders which will affect the citizens of India” and to “formulate guidelines for overlapping areas of governance", the PIL says.