“The intentions are quite clear. We are not going to intervene in the autonomy of regulators,” Mukherjee told reporters on the sidelines of an event here.
A key finance ministry source also said the committee to be set up to decide on the jurisdiction issue of hybrid products will have three people from the government and four regulators.
“So there cannot be threat to autonomy of regulators,” he said. Concerned over dilution of its role in dealing with inter-regulatory disputes, RBI Governor D Subbarao had met the finance minister and asked the government to reconsider the ordinance it had issued last month to end the Irda-Sebi turf war over control of Ulips.
“I have come to meet the Finance Minister in connection with the ordinance that they have issued regarding settlement of the dispute on regulatory jurisdiction. RBI has certain reservations and concerns, which we have expressed in the letter,” Subbarao had said after the meeting.
Subbarao also raised issues concerning the role of the central bank in light of the ordinance.
The government last month ended a two-month-long turf war between insurance regulator Irda and capital market watchdog Sebi through an ordinance that made it clear that Ulips would be regulated by Irda.
The ordinance also sought to create a high-level panel, chaired by Finance Minister Pranab Mukherjee, that would sort out all issues of jurisdiction regarding hybrid products.
Earlier, Mukherjee launched UTI Mutual Fund investor education — Swatantra initiative to create awareness among the public about the concepts of financial planning and benefits of investing in mutual funds.