The Supreme Court today issued notices to the 14 private life insurance companies and the central government on a petition filed by the stock market regulator Securities Exchange Board of India (SEBI).
SEBI moved the petition in the Supreme Court seeking transfer of all pending cases at state high courts on the unit-linked insurance policies (ULIPs) to the apex court, a CNBC-TV18 report said.
The SEBI move follows two separate PILs filed in the Mumbai and Allahabad high courts.
In a petition filed in the Mumbai High Court, a Mumbai-based investor had sought guidelines on the overlapping of governance over the unit-linked insurance policies. The petition has made both SEBI and the IRDA parties.
Another PIL, filed in the Allahabad High Court against the IRDA, blamed insurance companies for misleading investors by promising very high returns on unit-linked insurance policies.
The petition said insurers were mis-selling ULIPs and that some of these firms are involving in multi-level marketing activities.