Sebi has come out with the verdict on Insurance company selling ULIPS and it has banned the following insurance company for doing the same . It has been noticed that the following entities have launched several Unit Linked Insurance Products (ULIPs) :-
a. Aegon Religare Life Insurance Company Limitedb. Aviva Life Insurance Company India Limitedc. Bajaj Allianz Life Insurance Company Limitedd. Bharti AXA Life Insurance Company Limitede. Birla Sun Life Insurance Company Limitedf. HDFC Standard Life Insurance Company Limitedg. ICICI Prudential Life Insurance Company Limitedh. ING Vyasa Life Insurance Company Limitedi. Kotak Mahindra Old Mutual Life Insurance Limitedj. Max New York Life Insurance Co. Limitedk. Metlife India Insurance Company Limitedl. Reliance Life Insurance Company Limitedm. SBI Life Insurance Company Limitedn. TATA AIG Life Insurance Company Limited
Since, the ULIPs launched by the abovesaid entities were prima facie found to be akin to the mutual fund schemes and were launched without obtaining registration from the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “the SEBI Act”) and the regulations made thereunder, notices were issued to these entities on January 15, 2010 (except in case of HDFC Standard Life Insurance Company Limited where the notice was issued on December 14, 2009). SEBI had sought replies from the said entities as to how the ULIPs were launched without obtaining the requisite certificate of registration from SEBI and why appropriate action should not be taken against them under the provisions of the SEBI Act.
Final Verdict : The 14 Insurance Company is restrain from raising further monies/subscription, new and/or additional, from the investors for any product (including ULIPs) having an investment component in the nature of mutual funds till they obtain registration from SEBI.
