Even as the turf war on Ulips continues, Regulatory & Development Authority (Irda) chairman J Harinarayan on Friday said Irda should remain the sole regulator for the schemes.
?I am firm on my belief that it is Insurance (Irda), which is the regulatory authority for all kinds of insurance products, including the Unit Linked Insurance Plans(Ulips),?? he told FE after meeting Sebi chief CB Bhave, at Hyderabad to resolve the situation where two regulators have been battling over the issue as to whether Ulips should be regulated by both of them or either of them.
Earlier Sebi had claimed authority to regulate ULIP business and had sent notices to the life insurers saying that they were violating the laws of the capital market regulator by selling ULIPs without registering themselves with it. However, Harinarayan refused the divulge the other details of the Friday meeting .
Earlier, Harinarayan had said same financial products should not be regulated by multiple regulatory authorities. The two regulators are reported to have discussed at length on the regulation of Ulips during the hour-long meeting in the southern city..
Sebi had said that as Ulips fall under the ?collective investment scheme? category, which are largely investment accumulation products, and as per Section 12 1(b) of the Sebi Act, requires the market regulator?s approval. Besides, Sebi had asked them that life insurers are following unit-linked accounting, prescribed for mutual funds, to calculate the net asset value (NAV) of Ulips and should, therefore, be subjected to its regulations.