Nirupam urges FM to clear Sebi-Irda confusion

NEW DELHI: With the Insurance Regulatory and Development Authority (Irda) and the Securities and Exchange Board of India (Sebi) stand-off over the right of private insurance companies to service Ulips creating uncertainty among investors, a Congress MP has sought finance minister Pranab Mukherjee’s immediate intervention to resolve the imbroglio before the market resumes trading on Monday morning.

Sanjay Nirupam, Congress MP from Mumbai North, urged the FM to resolve the “unwarranted turmoil” between the two regulators on an urgent basis “since the insurance industry supplies the main source of long-term money for investment in infrastructure”.

In his two-page letter to Mr Mukherjee on Sunday, Mr Nirupam cited the confrontation between the two regulators to build his case for government intervention. “As you are aware, an unseemly turf war between the two regulators — the Sebi and Irda — is out in the open, thereby causing panic among investors,” he said.

“Investors are unsure about what this means and whether they should rush to redeem their investments on Monday morning. The panic is even more likely because the Sebi action seems to have kept the LIC’s schemes, which are similar in nature, outside the purview of its action,” Mr Nirupam argued.