You heard it first on CNBC-TV18 that market regulator SEBI issued showcause notices to several life insurance companies. We now learn that officials from both the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority (IRDA) met today in Hyderabad to discuss the issue, reports CNBC-TV18's Avni Raja.
The meeting took place on the back of insurance companies' responses to SEBI's showcause notice. Officials met in the presence of SEBI Chairman CB Bhave and IRDA Chairman Hari Narayan. Both sides put forth their points of view. Officials have decided to hold further meetings.
To rewind, SEBI had issued showcause notices to life insurance companies last year. The notices were issued for unit linked products (ULIPs).
SEBI claims that ULIPs fall under the collective investment schemes while IRDA says that ULIPs are allowed under the IRDA Act.
