Finmin meets Sebi, Irda on Ulip row

NEW DELHI: The finance ministry has held a meeting with the officials of the two warring regulators, Sebi and Irda, over the issue of control of Ulips and is understood to have impressed upon them the need to sort out the differences amicably.

The meeting, which was held yesterday, came even as the Supreme Court issued notices to the Centre, Irda and 14 life insurance companies on a petition by the markets regulator Sebi to transfer all the PILs filed in different high courts to the apex court.
"They met us yesterday... Everything is normal," finance secretary Ashok Chawla told reporters when asked whether the failure of truce brokered by the ministry has prompted them to call the regulators for a second round of discussion.

The insurance watchdog Irda is locked in a turf war with Sebi over regulation of Ulips which are insurance products having investment components. The problem came to the fore after Irda advised 14 life insurance companies to ignore the April 9 Sebi order banning Ulip schemes.

The row prompted the finance ministry to intervene in the matter and mediate an agreement under which both the regulators agreed to seek a legally binding order on Ulip jurisdiction.

Following this, Sebi moved the Supreme Court to transfer all cases pertaining to Ulip issue to the apex court following which notices were sent to the Centre, Irda and 14 insurers. The next date for hearing has been fixed on July 8.