As on the one end, market regulator has banned several insurance companies from selling Unit linked investment plans (ULIPs) in the Indian market, insurance regulator IRDA has recently confirmed the fact that the money of investors that have put in their hard earned money into the equity linked products are safe.

Moreover, IRDA chairman J Harinarayan gave the much-needed boost to the confidence of the investors as it was seeking greater clarity from authorities on jurisdiction of the two regulators. Harinarayan also added the fact that SEBI dies not hold the right for jurisdiction on ULIP products. However, the decision of SEBI to ban insurance companies clearly testifies the fact that it believes otherwise.

It was on late Friday night that the market regulator SEBI banned 14 life insurance companies, including Reliance Life, SBI Life, ICICI Prudential, Tata AIG and HDFC Standard Life, from raising fresh money from investors in ULIP schemes out of which a major chunk of funds in stock markets. However, just a day after, IRDA asked the insurance companies to continue their business as usual, asking for clarification from SEBI to issue such an order.