Life ins cos to meet to discuss SEBI order on ULIPs

MUMBAI: Against the backdrop of Sebi banning 14 life insurers from selling ULIPs, the insurers are likely to meet here on Monday to examine various options open to them for relief against the order.

SEBI had on Friday night, banned 14 life insurance companies from selling ULIPs on the ground that they were akin to mutual funds and were launched without obtaining registration from it.

The insurance companies are likely to meet Life Insurance Council on Monday to examine various options including legal to counter the Sebi order.

Life Insurance Council's Chairman, S B Mathur, said that no decision has yet been taken on a Monday meeting.

However, industry sources said that a meeting was likely to be held to discuss the future course of action.

The market regulator has banned 14 insurers -ICICI Prudential Life, Bharti AXA Life, Reliance Life, Aviva Life Bajaj Allianz Life, Birla Sun Life, Metlife Insurance, Tata AIG Life, Aegon Religare, HDFC Standard, Kotak Life, Max New York Life, ING Vyasa Life and SBI Life, from selling ULIPs.

There is also speculation that Sebi would issue a show cause notices to LIC and a few other life insurers for not seeking its approval before launching their ULIPs.