In the face of the Insurance Regulatory and Development Authority's (IRDA) decision of moving court to challenge a ban on unit linked insurance products (ULIPs) imposed by it, the Securities and Exchange Board of India (SEBI) on Thursday moved the Supreme Court and some high courts to guard against any ex-parte decision.
According to highly placed sources, SEBI filed caveats including in high courts of Delhi, Bombay and Hyderabad but no official comments could be obtained from the market regulator.
SEBI had last week said that all ULIPs issued after April 9 will have to have its approval. This was questioned by the IRDA.
The caveat comes a day after the government asked both regulators — SEBI and the IRDA — to move court immediately to resolve differences over who will have jurisdiction over ULIPs.
On April 10, SEBI had banned 14 life insurance companies.
Later on April 14, SEBI came out with a second order that the exempted existing ULIP schemes of these 14 players from the ban.