Amid a turf war with SEBI on ULIP schemes, insurance regulator IRDA today assured investors that the equity-linked products are safe, while seeking greater clarity from authorities on jurisdiction of the two watchdogs.
"I think we will have to have greater clarity on respective jurisdiction. Investors are safe," IRDA Chairman J Harinarayan told reporters outside the Finance Ministry's office at the North Block.
Harinaryan came today to give his side of the picture to the Finance Ministry officials.
"I don't think I have come here for a decision. I am here to give a perspective on the issue. SEBI does not have jurisdiction on ULIP products. SEBI believes otherwise," he said.
SEBI Chairman C B Bhave, who is in Delhi to attend a function, may also meet the ministry official on the issue.
On late Friday night, SEBI banned 14 life insurance companies, including Reliance Life, SBI Life, ICICI Prudential, Tata AIG and HDFC Standard Life , from raising fresh money in ULIP schemes that invests a major chunk of funds in stock markets.
A day after, IRDA asked these companies to continue their business as usual, questioning the SEBI's authority to issue such an order.
"The decision which they (SEBI) have taken have a negative implication on the financials of policy holders and insurance companies," Harinarayan said.