Capital market regulator Securities and Exchange Board of India is working together with the Insurance Regulatory and Development Authority to expeditiously find a "legally binding" resolution as to who controls unit linked products, and there are no restrictions on investment in existing schemes, SEBI chairman C B Bhave said on Friday.
"We want to do it (move appropriate court) quickly," Bhave said on the sidelines of a CII conference on Indian financial markets in Singapore, when he was asked about SEBI moving the court for resolving the jurisdiction issue.
He also told the foreign institutional investors apprehensive about the turf war between the two regulators that they can continue to invest in current ULIPs, which have a portfolio of over Rs92,000 crore. SEBI's latest direction is only against floating any new product in this category, he clarified.
"FIIs should know what the correct position is and the correct position is that investors can continue to invest in current ULIPs and no new ULIPs are allowed," Bhave said.
SEBI had last week said that all ULIPs issued after 9 April would need its approval. This was questioned by insurance sector regulator IRDA. On Thursday, the market watchdog had moved the Supreme Court and some high courts to guard against any ex-parte decision.
On 10 April, SEBI had banned 14 life insurance companies, including those belonging to the Tatas, SBI, ICICI, HDFC and Reliance Anil Ambani group, from raising funds through ULIPs without its approval. Later on 14 April, SEBI came out with a second order that exempted the existing ULIP schemes of these 14 players from the ban.