Securities and Exchange Board of India chairman CM Bhave has said his organisation is working closely with the insurance regulator to find a legally binding solution for Ulips. His comments came even as Sebi filed caveats in several high courts in the country to ensure its views are heard before any order is passed.
But top law officers of the country denied the Sebi has moved the Supreme Court. ?How can Sebi directly move the Supreme Court. Even rumours about seeking the apex court?s opinion are not correct?This is an unfortunate situation. Both the statutory regulators are trying to properly resolve the issue?, one of them said.
They said to guard against any ex-parte decision, Sebi has moved four high courts including the Bombay High Court which is hearing a public interest litigation on the issue. But the officer explained that even that litigation cannot be transferred to the Supreme Court. Such transfer can be only sought when there is an apprehension of multiplicity of judgments on the issue, they added. ?We want to do it (move appropriate court) quickly,?Bhave told reporters on the sidelines of a CII organised conference on the Indian Financial Markets. His comments were meant to comfort the foreign investors, about the ramifications of a turf war between the regulators. ?FIIs should know what the correct position is and the correct position is that investors can continue to invest in current Ulips but no new Ulips are allowed,? he said.
Last week, Sebi ordered 14 life insurance companies to obtain a certificate of approval from it before selling Ulip policies, as the policies include a sizable equity and debt market investment, which is its domain.