New Delhi, Apr 12: After a meeting with the Insurance Regulatory and Development Authority (IRDA) and Union Finance Ministry officials here, the Securities and Exchange Board of India (SEBI) on Monday, Apr 12 decided to lift the ban imposed against 14 insurances firms on selling the Unit Linked Insurance Polices (ULIPs).
"The ULIP matter has been restored," the Finance Minister, Pranab Mukherjee said while talking to the reporters after the meeting, restoring status quo on the ULIPs.
“To resolve any ambiguity, the regulators have agreed to jointly seek a legal mandate," he added.
The ULIP crisis began on Friday, Apr 2 night when the market regulator imposed a ban on 14 major insurance firms including SBI life, Tata AIG among others from raising money for ULIP schemes.
The issue intensified when IRDA questioned SEBI's authority in imposing such a ban and asked the insurance firms to continue selling UPLIPs.
However, now since the SEBI has decided to lift the ban the insurance companies can go back to providing ULIPs.
Life insurers sell UPLIPs to people and invest the money from the customers in equity and debt markets.