Finance Ministry says SEBI nod not needed for ULIP sales

NEW DELHI Sat Jun 19, 2010 8:32pm IST

A man shows balloons in the colours of the Indian flag to his child at a market during Independence Day celebrations in Chandigarh August 15, 2008. REUTERS/Ajay Verma/Files

A man shows balloons in the colours of the Indian flag to his child at a market during Independence Day celebrations in Chandigarh August 15, 2008.

Credit: Reuters/Ajay Verma/Files

Related Topics

Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

NEW DELHI (Reuters) - The finance ministry said on Saturday life insurers could sell unit-linked insurance plans (ULIPs) without seeking a nod from the capital markets regulator, ending a spat between regulators over the hybrid products.

The presidential decree permitting such sales went into force late on Friday, the finance ministry said in statement. Under the law, such orders issued when parliament is not in session must be confirmed by lawmakers in their next sitting.

The capital markets regulator and the insurance regulator had locked horns on who should regulate ULIPs, mutual fund instruments with an added life cover, given the products combined insurance and investments.

The Securities and Exchange Board of India (SEBI) had in April barred 14 life insurance companies from selling ULIPs without its approval. The Insurance Regulatory Development Authority (IRDA) argued SEBI had no authority to do so.

After the finance ministry intervened, the two decided to maintain the status quo.

"Life insurance business shall include any Unit Linked Insurance Policy or scripts or any such instruments. This would set at rest all the issues regarding ULIPs between two financial regulators," the finance ministry said in the statement.

Parliament will next meet for the monsoon session, which generally starts in July.

(Reporting by C.J. Kuncheria; editing by Patrick Graham)

(For more news on Reuters India, click in.reuters.com)

FILED UNDER:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage