Author : VS Warrier
The Securities and Insurance Laws (Amendment and Validation) Ordinance, 2010
The conflict between the two major regulators viz. SEBI and IRDA, over the hybrid instruments like ULIPs required an immediate solution. Since the Parliament was not in session tan Ordinance was passed by the President of India on 18th June 2010.
Chapter I of the Ordinance provides immediate effect to the Ordinance. Chapter II deals with an amendment to the Reserve Bank of India Act 1934. It inserts a new Chapter IIIE which establishes a joint mechanism to put to rest difference of opinion between the regulators with regard to regulatory jurisdiction over certain instruments. These instruments are listed as derivatives, money market instruments, repos or reverse repos or securities as defined in the Reserve Bank of India Act or policy of insurance as defined under the Insurance Act, or any other securities referred to under the Securities Contracts (Regulation) Act. Continue reading “The Securities and Insurance Laws (Amendment and Validation) Ordinance & Act, 2010”