ULIP insurance policies safe: IRDA on SEBI's ban order

             Insurance regulator IRDA on Saturday said that ULIP policies, under which a portion of funds is invested in the stock markets, are "safe and secure"

          "Policy holders of the Unit Linked Insurance Products (ULIPs) offered by different insurance companies are assured that these policies are safe and secure", said IRDA chairman J Hari Narayan in a release that followed market regulator Sebi banning such schemes of select companies last night.

             He further said that IRDA will take up the matter "expeditiously in the appropriate forum in accordance with the law."

             Securities and Exchange Board of India (SEBI) in an order issued on Friday evening banned 14 life insurance companies, including those belonging to Tatas, SBI, ICICI, HDFC and Reliance Anil Ambani group from raising funds through unit linked schemes.
source:The Economic Times

SEBI has barred 14 private life insurance companies from selling unit-linked insurance plans without its approval

               Market regulator SEBI has barred 14 private life insurance companies from selling unit-linked insurance plans without its approval, giving a fresh twist to the turf war between SEBI and insurance watchdog IRDA.

             “We expect some companies to move the court” said the CEO of a life company. “It is unfortunate that this dispute has been allowed to reach this stage. It is time for the finance ministry to intervene” he added.

              In an order signed by Prashant Sharn, wholetime director, SEBI, said, “I hereby direct the entities mentioned in this order not to issue any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including Ulips) having an investment component in the nature of mutual funds, till they obtain the requisite certificate of registration from SEBI”

               The 14 companies mentioned in this order include Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.

         A few months back, SEBI had questioned individual life companies why they were selling investment products without its approval. Companies had responded individually that insurance laws permit them to offer an investment component within a life insurance policy. They also said that they were regulated by SEBI who had cleared all these products. The life companies were supported by the market regulator, who reiterated the stand taken by life companies.

110 private companies requested for CISF cover'

                About 110 private sector companies across the country have requested for security cover from the Central Industrial Security Force, CISF Director General N R Das said today.

               "Nearly 110 private organisations have applied for getting the CISF security cover including those in the areas of hotel business, education and iron and steel making," a release quoting Das said here.

               The practice to provide security cover of the paramilitary force to private sector companies began after an amendment to the Act related to CISF, following which it has provided security to Bangalore-based Infosys Technologies and later also covered its Mysore campus.

               The CISF is examining to provide security cover to 33 other organisations, Das said at a programme at Barwah near here.

               At present, the paramilitary force is handling security at 290 places in the country including 57 airports.

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