Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ACCOUNTING STANDARDS :: TDS :: list of goods taxed at 4% :: cpt :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: due date for vat payment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
General »
 Number of companies paying tax over Rs 100 crore declines in 2013-14
 Tax and the dilemma of the self-employed
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA

IRDA, SEBI war may hit ULIP listings
January, 25th 2010

The battle between the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) over the regulation of unit-linked insurance plans could affect the plans of companies aiming to list unless the differences are resolved soon.

Life companies, when contacted, said they would stick to the line that the products come under IRDA regulation and are unlikely to either stop selling ULIPs or obtain registration with SEBI. Insurers say for the issue to be now closed, the regulators will have to sort it out among themselves or it will require the intervention of the government.

Among life insurance companies, Reliance Life Insurance had announced its intent to go for an IPO. Some time ago, HDFC Standard Life too had said it would look at an IPO in 2010-11. The Aditya Birla Group is looking at hiving off its financial services business under a new entity an exercise which would require listing of the new arm.

Although there are no guidelines in place for life insurance IPOs, IRDA is expected to come out with disclosure norms for companies seeking a listing by end February. Following this, SEBI is also expected to come out with the disclosure requirement in a couple of months. Only after the market regulation notifies the disclosure norms, the first life insurance company can go public.

When contacted by ET, Reliance Capital chief executive Sam Ghosh, said: We hope this issue gets resolved before we file our draft prospectus.

Most of the life companies do not agree with SEBIs interpretation of laws with respect to regulation of ULIPs. The market regulator last week wrote to most of the life insurance companies stating that their ULIP products raise money from the public and the money is invested in a fund chosen by public and the calculation is through net asset value which is unitised fund value.

According to SEBI, all these characteristics are akin to mutual fund schemes.

The market watchdog has cited Section 12(1)b of the SEBI Act, which says no person shall sponsor or carry on any venture capital fund, or collective investment scheme, including mutual funds, unless he obtains a certificate of registration from the board.

Collective investment schemes as defined under Section 11A of the SEBI Act clearly excludes contracts of insurance under the Insurance Act, said V Srinivasan, chief financial officer of Bharti Axa Life Insurance. He added that in a sense, insurance has always been a collective investment scheme where resources are mobilised for investment and ULIP is only one way of accounting and does not change the fundamental basis of insurance.

Incidentally, the provision on Collective Investment Schemes was introduced to regulate entities such as promoters of plantation schemes or timeshare schemes who escaped regulations in the past.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions