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No New ULIPs, SEBI Insists

SEBI clarifies that its earlier order is in abeyance only for existing schemes. No new ULIPs can be launched till insurance companies get SEBI registration

In a press release posted on its websites a short while back, SEBI has clarified that its earlier order has been held in abeyance only for existing schemes. Insurance companies cannot launch any new schemes without SEBI registration. 

The full text of the press release follows:

Regarding enforcement of Order No. WTM/PS/IMD/06/Apr/ 2010 dated 09.04.10 in the matter of ULIPs

1. Whole Time Member, SEBI has passed an order No WTM/PS/IMD/06/Apr/ 2010 dated   09.04.10.
2. In terms of para 26 of the said order, 14 entities have been restrained from issuing any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including ULIPs) having an investment component in the nature of mutual funds, till they obtain the requisite certificate of registration from SEBI. As per para 28 of the said order, the order shall come into force with immediate effect, i.e.  from 09.04.10.
3. This is to bring to the notice of investors that SEBI has decided to keep in abeyance, till further notice, the enforcement of the above directions with respect to the ULIP schemes /products existing on the date of the order, i.e. 09.04.10.  However, with respect to any new ULIP schemes / products launched after 09.04.10, the directions mentioned in the said order will be enforced as indicated therein.
4. The aforesaid 14 entities have been informed of the above decision separately.