A day after the Finance Ministry brokered a truce between SEBI and IRDA, SEBI on Tuesday said any new ULIP scheme launched after April 9, 2010 by insurance companies will remain covered by its earlier ban order.
“...with respect to any new ULIP schemes/products launched after April 9, 2010, the directions mentioned in the said order (that banned 14 life insurance companies from launching ULIPs) will be enforced as indicated therein,” said an order by the Securities and Exchange Board of India (SEBI).
The market regulator, however, clarified that SEBI has decided to keep in abeyance, till further notice, its order concerning the ongoing ULIP schemes.
“This is to bring to the notice of the investors that SEBI has decided to keep in abeyance, till further notice, the enforcement of the above direction with respect to any new ULIP schemes/products existing on the date of the order”, it said.
Finance Minister Pranab Mukherjee, who was in Gurgaon to attend a function, told reporters, “I do not know what circular they have issued. It is to be examined, but both of them (SEBI and insurance regulator IRDA) agreed on Monday to resolve the issue by referring the matter to the competent court and the interpretation which will be given by the court will be binding to both of them.”
The Insurance Regulatory Development Authority (IRDA) had earlier asked the insurance companies to ignore SEBI’s ban order and continue their business as usual, forcing the government to intervene and broker a truce.