Finmin to look into Ulip ban issue

Finmin to look into Ulip ban issue

New Delhi: The Finance Ministry on Monday said it will look into the orders of the two regulators — Sebi and Irda — on equity-linked products sold by 14 companies.

“We need to look at both the orders internally and discuss it," finance secretary Ashok Chawla told reporters in New Delhi.

Ulips - a common insurance plan sold by life insurers, where the money collected from consumers is invested into equity and debt markets - have become a bone of contention between the two regulators, with both claiming regulatory authority over the scheme.

Taking Sebi head on, insurance regulator Irda had asked insurance firms to continue selling Ulips, a day after the markets regulator barred 14 insurers from selling their Ulips without its approval.

The companies, which come under the ban include Reliance Life, SBI Life, ICICI Prudential, Tata AIG and HDFC Standard Life.