IRDA rejects SEBI ban on life insurers

IRDA rejects SEBI ban on life insurers
PTI
NEW DELHI, APRIL 10
In a piquant situation, insurance regulator IRDA (Insurance Regulatory and Development Authority) today rejected the market regulator SEBI’s (Securities and Exchange Board of India) ban on life insurance companies from raising funds through unit-linked insurance policies and asked them to do business as usual.
Taking SEBI head on in the turf war over who would administer ULIP (unit-linked insurance products) scheme, IRDA, in a surprise order, told the 14 affected life insurance companies that it has set aside the SEBI ban.
SEBI Chairman CV Bhave nor its spokesperson could be contacted for comments.
The IRDA order comes within 24 hours of SEBI banning 14 life insurers, including those belonging to the Tatas, Reliance Anil Ambani Group, State Bank of India, ICICI Bank and HDFC among others from raising the funds through ULIPS.
Earlier in the day, Finance Secretary Ashok Chawla told reporters that said it (the SEBI ban on ULIPs) is an issue that needs to be settled by the two regulators.
“It’s a matter between the regulators, so they have to decide,” Chawla said.
“SEBI has taken a legal process. So, let’s see what happens,” he added. IRDA in its order late Saturday said, “All the 14 insurance companies which are mentioned in the order of SEBI are directed to note that notwithstanding the said order of the SEBI, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPs in accordance with the Insurance Act.”