The Finance ministry is expected to have a discussion on the recent tussle between the SEBI and IRDA over an insurance product linked to the stock market. Sale of ULIPs has become the bone of contention for the two regulatory bodies of the country.

The Insurance Regulatory and Development Authority (IRDA) have asked insurance companies to disregard the order from the Securities Exchange Board of India (SEBI) regarding the sale of ULIPs. SEBI has permitted 14 companies to sell ULIPs (unit linked insurance policies).

But under section 34(1) of the Insurance Act, IRDA has asked the insurance companies to stop selling these ULIPs and instructed them to continue business as usual.

Now it is the Finance Ministry which has stepped forward to resolve the issue. Finance Secretary Ashok Chawla has informed that the Ministry will see whether the government has a role in such circumstances or else the legal processes will be carried forward soon.

However now the SEBI have barred 14 insurance companies from selling ULIPs saying they needed to register with the capital markets regulator.