We'll abide by advice, says forum

“We are taking the Sebi circular up with Irda and will go by Irda decision on whether the firms could issue fresh ULIPs,” Life Insurance Council Secretary General S B Mathur told PTI.
The whole controversy started after Sebi banned 14 life insurance firms last week, including SBI Life, ICICI Prudential, Reliance Life and HDFC Standard Life, to raise any further money from ULIP schemes, unless they get registration from Sebi.

A day after, Irda asked insurers to ignore the order and continue their business as usual. After two regulators Sebi and Irda came out with conflicting orders, the Finance Ministry had intervened and the two watchdogs agreed to restore status quo ante, that is the situation prevailing before the Sebi ban order.

Court to decide
The status quo ante will be restored till court decides on the jurisdiction of two watchdogs on ULIP schemes.

Sebi and Irda had agreed to jointly seek legally binding mandate on the issue, Finance Minister Pranab Mukherjee had said. However, on Tuesday, Sebi had asked the 14 insurance firms not to issue fresh ULIP schemes after April 9. Irda has so far not come out with any circular in response to the fresh ban.

When asked whether Sebi’s fresh order was against the agreement reached by the two regulators, Mathur said, “We are not aware what was the agreement between the two regulators and whether the fresh Sebi order is in accordance with that.”
Press Trust of India

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