IRDA had No Objection to Government’s Move to set-up Joint Mechanism to Resolve the Jurisdictional Dispute on Hybrid Products Among Financial Sector Regulators
The Insurance Regulation Development Authority (IRDA) had not objected to the Government’s move to resolve the conflict between IRDA and SEBI and to set up a joint mechanism to resolve jurisdictional dispute on hybrid products among financial sector regulators.
In order to bring an end to the jurisdictional dispute between Securities and Exchange Board of India (SEBI) and Insurance Regulatory Authority and Development Authority (IRDA) on Unit Linked Insurance Policies, the Government had promulgated an Ordinance viz. ‘The Securities and Insurance Laws (Amendment & Validation) Ordinance, 2010’ in 18th June, 2010. This Ordinance clarified that the life insurance business also includes any unit linked insurance business. Further, a Joint Mechanism was also set up to resolve jurisdictional dispute on hybrid products which may arise in future among the various financial sector regulators i.e. the Reserve Bank of India (RBI), IRDA, SEBI and Pension Fund Regulatory and Development Authority (PFRDA). A bill to replace the Ordinance has already been introduced in both the Houses of Parliament and the same was passed by Lok Sabha on 2.8.2010 and Rajya Sabha on 9.8.2010.
This information was provided by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to an Unstarred Question raised in Rajya Sabha today.
DSM/BY/SAK/RSUSQ 2467
(Release ID :64932)