New Delhi: Concerned over the ongoing public spat between the Irda and Sebi, the government has asked the two regulators on Wednesday to move court immediately on the contentious issue of who will regulate unit-linked insurance products linked to stocks.
At the same time, finance secretary Ashok Chawla did not find anything amiss in Sebi’s Tuesday’s order asking insurers not to issue new Ulips, which some analysts felt was against the status quo ante directed by finance minister Pranab Mukherjee on Monday.
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“We want them to go to the court at the soonest. Finance minister has mentioned status quo ante, which means that whatever prevailed before the date of the Sebi order will continue unhindered... that is what Sebi has said,” Chawla told reporters.
When the fight between the two regulators became public on Friday last following Sebi ordering a ban on 14 insurers from raising fresh equity through Ulip, a move challenged by Irda chairman J Harinarayan, Chawla had said that it was for the two to settle between them.
“The larger issue on who has the regulatory oversight authority (over Ulips) ...will be decided by the court. We want them to go to the court at the soonest,” Chawla said.
The markets regulator on Tuesday came out with a second order on the Ulip issues while keeping in abeyance its earlier ban on existing Ulip schemes of 14 life insurance companies, which included those promoted by SBI, ICICI Bank and Adag Group.