Money on the markets
A maturing market amid the mayhem
The finance ministry on Saturday said life insurers could sell unit-linked insurance plans without seeking a nod from the Securities and Exchange Board of India (SEBI).
This ends a spat between regulators over the much sought after product. Under the law, such orders issued when parliament is not in session must be confirmed by lawmakers in their next sitting.
The news would come as a relief to insurance firms and people who invest in such products.
SEBI had in April barred 14 life insurance companies from selling ULIPs without its approval. The Insurance Regulatory Development Authority (IRDA) argued SEBI had no authority to do so. After the finance ministry intervened, the two had decided to maintain the status quo.