‘SEBI, IRDA working together to resolve ULIPs issue’

Investors can continue to invest in current ULIPs and no new ULIPs are allowed, clarifies SEBI

Market regulator Securities and Exchange Board of India (SEBI) said today that it was working together with insurance watchdog IRDA (Insurance Regulatory and Development Authority) to expeditiously find a “legally binding” resolution to who controls unit-linked insurance plans (ULIPs) and there are no restrictions on investment in existing schemes.

“We want to do it (move the appropriate court) quickly,” SEBI chairman CB Bhave said on the sidelines of a CII conference on Indian financial markets.

He also told foreign institutional investors, who are apprehensive over the turf war between the two regulators, that they can “continue to invest in current ULIPs”, which have a portfolio of over Rs92,000 crore.

SEBI’s latest direction is against floating any new product, he clarified.

“FIIs should know what the correct position is and the correct position is that investors can continue to invest in current ULIPs and no new ULIPs are allowed,” Mr Bhave said.

SEBI had last week said that all ULIPs issued after 9th April will have to have its approval. This was questioned by insurance sector regulator IRDA.

Yesterday, the market watchdog had moved the Supreme Court and some High Courts to guard against any ex-parte decision.

On 10th April, SEBI had banned 14 life insurance companies from raising funds through ULIPs without its approval.

Later on 14th April, SEBI came out with a second order that exempted the existing ULIP schemes of these 14 players from the ban.
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COMMENTS

DILLIP SWAIN

8 years ago

DON'T FEAR SEBI.U HAVE DONE GOOD JOB FOR INNOCENT & GREEDY POLICY HOLDERS.IF U WILL SAVE POOR & GREEDY POLICYHOLDERS, GOD WILL SAVE U.NEVER BEND OR BREAK WITH ETHICS & PRINCIPLE.UR ROLE PROTECT INVESTORS ,NOT COMPANIES.

Mr Gates, do you know this?

Underage, underpaid workers working 15-hour shifts, sexually predatory security guards, hourly pay of just 52 cents per hour after deductions for the canteen food. No talking during work hours, no listening to music, no bathroom breaks. These are just some of the conditions that workers at China’s KYE Systems Corp plant in Dongguan City have to endure. The factory produces hardware for US companies, including Microsoft, and its work practices have been documented in a report by the National Labor Committee. What would the directors of the Bill and Melinda Gates Foundation say to all this?

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COMMENTS

S.A.Narayan

8 years ago

If we pause for a moment and reflect on this article, it will be clear that large corporations all over the world buy miilions of items or components or requirements for their use which are made or supplied by third parties, in a globalised world from all over the world. As good governance they may have vendor conduct rules which would bar violation of local laws or unfair labour practices etc etc. Beyond that inspection of third party facilities, barring for core items cannot really be stretched. At best good corporates may respond by blacklisting vendors, but how many will they do considering that what is happening in China is happening in so many parts of the world. Besides the option to the chinese workers may be jobs versus starvation, as can be in many Indian situations.

This is a massive new bubble, says Soros

The methods used to resolve the 2008 financial crisis are no different from the methods that helped cause the crisis to begin with.

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