New Delhi: The Bombay Stock Exchange benchmark fell 80 points on Monday on a row between Sebi and Irda over their jurisdiction on Ulip linked to the stockmarket.
On Friday night, markets regulator Sebi barred 14 life insurers from issuing unit-linked insurance products (Ulips) with immediate effect.
“Ulips offered by the said entities are a combination of investment and insurance and, therefore, the investment components are in the nature of mutual funds which can only be offered/launched after obtaining registration from Sebi,” Sebi said in its order.
In response to this, insurance regulator Irda assured Ulip investors that their investments are safe and asked insurers to continue with their business.
Last week, the Sensex registered its ninth straight weekly gain -- its best run since March-June 2009 when it had risen for 14 consecutive weeks.
The BSE 30-share index Sensex closed down 80.14 points at 17, 853.
Meanwhile, India’s industrial output rose at a slower-than-expected 15.1% in February from a year earlier, helped by stimulus measures that boosted domestic demand, data showed.
Banks declined on fears interest rates would be tighten by the Reserve Bank of India in its monetary policy, which is scheduled on 20 April.
The NSE 50-share index Nifty fell 22.95 points at 5339.70.
Asia and European markets surged on Monday after eurozone countries unveiled a massive package to support debt-laden Greece.
Oil rose above $85, with New York’s main futures contract, light sweet crude for delivery in May, advancing 41 cents to $85.33 a barrel.