Insurance regulator Insurance Regulatory and Development Authority (IRDA) has said it will take legal opinion on the market regulator Securities and Exchange Board of India's (SEBI) show-cause notice to insurance companies.
Recently, the market regulator issued notices to several insurance companies over unit-linked insurance plans (ULIPs) and said such products required the SEBI approval.
"We are currently examining the legalities of the SEBI show-cause notice. ULIPs do not require SEBI approval," the insurance regulator has said.
The two regulators appear on a collision course and IRDA recently said the issue may require intervention from the Finance Ministry.
