Unit-linked equity products (ULIPs) are insurance plans sold by life insurers where the money collected from consumers is invested into equity and debt markets and returns are linked to the same.
IRDA Chairman J Hari Narayan in a signed order has asserted that it is IRDA which will control the ULIPs, which are issued by the insurance companies.
Narayan said the market regulator's action would jeopardise the financial position of the insurers and also upset financial stability.
He further advised that companies should carry out insurance business as usual, including marketing and servicing of ULIPs
Earlier, SEBI had banned 14 life insurance companies, including those belonging to the Tatas, Reliance Anil Ambani Group, SBI, ICICI Bank and HDFC, citing that ULIPs have been launched without the consent of regulator.