The controversy between SEBI and IRDA on Unit Linked Insurance Products (ULIP) still is not resolved. SEBI is arguing that ULIP is a collective investment and ULIP should be regulated by the SEBI. IRDA is saying that it is an insurance product and it is approved under insurance act. IRDA questioned SEBI that why it is now questioning on ULIP after launching over a number of years. This controversy went to Indian finance minister court, but he was also not able to resolve and suggested them to get legal advice from the appropriate court on control over the ULIP’s. Meanwhile he asked the regulators to maintain status quo on ULIP schemes till it resolves. Now this issue has moved into the hands of Supreme Court. Supreme Court will hear the issue in the month of July. Prior to this, SEBI had filed a petition in the Supreme Court seeking transferring all the ULIP related cases from various high courts to the Apex Court. Till the Supreme Court gives the judgment, no insurance company is supposed to sell new ULIPs.
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