Looking at the current tussle between the regulators regarding the popular unit-linked insurance plans (ULIPs), the Finance Minister Pranab Mukherjee has announced introduction of a bill.

The bill was introduced in the Lok Sabha and the idea behind the same is to replace the existing ordinance and settle all the disputes.

As per the ordinance, IRDA will be looking after the issues related to ULIPs. The issue began when the market regulator, SEBI and insurance regulator, IRDA, did a public spat on ULIPs.

Pranab also introduced the Securities and Insurance Laws (Amendment and Validation) Bill, 2010 and said that he was sure that the same will be able to deal with different kinds of opinions. This is necessary to set up a joint mechanism, he added.

Talking to press, the FM said, "for resolving future differences of opinion as to whether any other investment or securities market instrument or a component of money market instrument falls within the jurisdiction of the IRDA or SEBI or RBI or PFRDA."

The new bill also seeks to amend the existing Reserve Bank of India Act, 1934, the Insurance Act, 1938, the Securities and Exchange Board of India Act, 1992.