Government to bring bill to replace ULIP ordinance

Amid the RBI expressing reservations over the ULIP ordinance, the finance ministry today said that a bill to replace the ordinance would be brought in the forthcoming session of parliament beginning 26 July.

Finance secretary Ashok Chawla said that regulators had raised their points of view, which the finance minister had taken note of.

Chawla added that the ordinance in whatever form had to be placed before the parliament and it was a matter of a few days when the bill would be tabled and the future course of action on the particular piece of regulation known.

The IRDA has been vested powers through the ordinance to regulate ULIP schemes following the stand off between market watchdog SEBI and insurance regulator IRDA.

ULIPs are insurance schemes whose value is linked to the market value of shares in which they have been invested.

However, the RBI governor D Subbarao met finance minister Pranab Mukherjee a few days after the issue of ordinance to suggest that the government reconsider the ordinance.

"I have come to meet the finance minister in connection with the ordinance that they have issued regarding settlement of the dispute on regulatory jurisdiction.