A bureaucrat or a minister is respected by the size of the fiefdom he runs. So obviously when the corpus in ULIPs has got far higher than the full mutual fund industry….SEBI saw some ground slipping. If SEBI was so clear, it should have woken up long ago. Why was it sleeping.
Also ULIP is so much of a look alike product and it had to be IRDA’s ego that prevented it from doing a ‘cut copy paste’ of the SEBI regulation regarding portfolio norms, charges, disclosure, structure (why not seperate it from the funds of the loss making life insurance companies?) – why not have a trustee, custodian, r&t agent ? We have no clue whether life insurance companies are strictly following the next day nav, time stamping, etc.
In the meanwhile when a life insurance company buys a lemon, what is IRDA doing. After all if RBI is turning a blind eye to the banks taking SB a/c data to mis-sell a life insurance product which looks like a mutual fund Ministry of finance will have to step in, will it not? Do not even see a murmur from RBI about banks biggest future problems – expensive ‘micro -lending’ and life insurance mis-selling and life insurance bundling with loans. On the day it explodes, remember you saw it here first…like they say…’breaking news’
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