Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARDS :: TDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: empanelment
 
 
« General »
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious
 All scrutiny cases, sans search, to be e-assessed
 Key tax changes that will come into effect from April 1
 Eight lakh companies on Income Tax department radar for not filing tax returns
 4 things a taxpayer shouldn’t miss
 Impact on LTCG will be more than 10 per cent
 Here's how much the tax reliefs you want will cost the finance minister
 Companies (Appointment and Qualification of Directors) Amendment Rules, 2018
 How young earners can claim HRA tax exemption with ease

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 2018 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