Highlights of the Bill
- The Bill replaces an Ordinance which clarifies that Unit Linked Insurance Policies (ULIPs) shall be regulated by the Insurance Regulatory and Development Authority (IRDA), and not by the Securities Exchange Board of India (SEBI).
- A joint committee, chaired by the finance minister, has been established to resolve disputes over ‘hybrid’ instruments. The committee will consist of the governor of the Reserve Bank of India, and the heads of SEBI, IRDA and the pension fund regulator.
Key Issues and Anlaysis
- The law was issued as an ordinance and not through a bill. It is not clear whether there was an urgent and emergent situation that necessitated an Ordinance.
- The Government has offered no reasons why ULIPs should be regulated by IRDA rather than SEBI.