President of India Promulgates an Ordinance; issues Regarding Ulips between IRDA and SEBI Settled
The President of India has promulgated an Ordinance late last evening amending the RBI Act 1934, Insurance Act 1938, SEBI Act 1992 and Securities Contract Regulations Act 1956, thereby clarifying by way of an explanation that Life Insurance business shall include any Unit Linked Insurance Policy or scripts or any such instruments. This would set at rest all the issues regarding ULIPs between two financial regulators i.e. Securities Exchange Board of India (SEBI) and Insurance Regulatory Development Authority (IRDA)
Further, for sorting-out all issues of jurisdiction regarding hybrid products, a high level Committee under Chairmanship of Union Finance Minister has been constituted. Finance Secretary to Government of India, Secretary, Department of Financial Services and the Chiefs of four Financial Regulators viz. Reserve Bank of India (RBI), Insurance Regulatory Development Authority (IRDA), Securities Exchange Board of India (SEBI) and Pension Fund Regulatory Development Authority (PFRDA) will be the members of the aforesaid Committee.