Govt asks SEBI, IRDA to move court at once on ULIP issue

Wednesday 14, April, 2010 Concerned over the ongoing public spat between the two regulators, Government today asked SEBI and IRDA to move court immediately on theSEBI-IRDA ULIP Row contentious issue of who will regulate unit-linked insurance products. At the same time, Finance Secretary Ashok Chawla did not find anything amiss in SEBI's yesterday's order asking insurers not to issue any fresh ULIPs, which some analysts felt was against the status quo ante directed by Finance Minister Pranab Mukherjee on Monday. "We want them to go to the court at the soonest. Finance Minister has mentioned status quo ante, which means that whatever prevailed before the date of the SEBI order will continue unhindered... that is what SEBI has said," Chawla told reporters. When the fight between the regulators became public on Friday last following SEBI ordering a ban on 14 insurers from raising fresh equity through ULIP, a move challenged by IRDA Chairman J Hari Narayan, Chawla had said that it was for the two to settle between them.

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