Finance Minister Pranabh Mukherjee has restored the status quo on unit-linked insurance schemes (ULIP), reports CNBC-TV18. The Minister has sought a legally binding verdict from the courts on ULIPs. "Both IRDA and SEBI have agreed on a legally binding verdict on ULIPs. The earlier order by SEBI has been taken back," he said.
On Friday, SEBI had banned 14 entities from selling ULIPs. SEBI had said that the entities had not obtained any registration from the regulator though the ULIPs launched by them had an investment component in the nature of mutual funds. The order was to come into force with immediate effect.
But IRDA fought back and asked insurance companies to disregard the order. "Policyholders of the ULIPs offered by different insurance companies are assured that these policies are safe and secure and the matters arising out of the recent orders of the SEBI will be addressed expeditiously in the appropriate forum in accordance with law," IRDA said on its website.
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