Govt to look into ULIP ban issue: Finance Secy

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 here. 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 financial 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 capital market watchdog barred 14 insurers from selling these products without its approval.

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

ULIP investors are safe: IRDA
Amid a turf war with SEBI on ULIP schemes, insurance regulator IRDA on Monday assured investors that the equity-linked products are safe, while seeking greater clarity from authorities on jurisdiction of the two watchdogs.

"I think we will have to have greater clarity on respective jurisdiction. Investors are safe," IRDA chairman J Harinarayan told reporters outside the Finance Ministry's office at the North Block. Harinarayan came today to give his side of the picture to the Finance Ministry officials. "I don't think I have come here for a decision. I am here to give a perspective on the issue.

SEBI does not have jurisdiction on ULIP products. SEBI believes otherwise," he said. SEBI chairman CB Bhave, who is in Delhi to attend a function, may also meet the ministry official on the issue.