SEBI bans 14 private insurance companies from issuing ULIPs
Mumbai: Market regulator SEBI Friday night banned fourteen major private insurance companies, including SBI Life, ICICI Prudential and Tata AIG, from raising money from public for any Unit Linked Insurance Products (ULIP).
While passing the order late tonight, SEBI said the entities have not obtained any registration from the regulator though the ULIPs launched by them had an investment component in the nature of mutual funds.
"I hereby direct the entities...not to issue any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new 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," said Prashant Saran, wholetime SEBI member in an order.
The other insurance companies against whom SEBI passed an order are Aegon Religare Life, Aviva Life, Bajaj Allianz, Bharti AXA, Birla Sunlife, HDFC Standard Life, ING Vysya Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India and Reliance Life.
The order said ULIPs launched by the insurance companies were prima facie found to be akin to the mutual fund schemes.
While the SEBI regulates mutual funds and their schemes, Insurance Regulatory and Development Authority (IRDA) oversees functioning of insurance companies.
More from India
More from World
More from Sports
More from Entertaiment
- Panel discussion on BJP MLAs assaulting legislator Rashid inside J&K Assembly
- Watch: How Russian special forces Spetsnaz will end terror of ISIS
- Vladimir Putin's attack on ISIS making America and NATO nations uneasy?
- Two J&K MLAs clash over beef party issue in Legislative Assembly
- Watch: Man beheads wife; roams on streets with severed head in Pune
- Latest condition of Navjot Singh Sidhu: Sherry Paaji making steady recovery!
- FIR against Asaduddin Owaisi for posting objectionable picture of Yogi Adityanath on Facebook
- Man beheads wife over suspicion of illicit relationship, walks on road with her head
- Bihar has to choose between 'jungle raj' and 'vikas Raj': Narendra Modi
- Shocking! Saudi employer chops off Indian maid's hands