In this world, cause and effect theory works. Why? is connected with every happening of new offline and online. When we see news, we don't care the reasons of happening. But, this is major weak point all of us. News is not important but what are reasons behind these news, are very important.
All of us know that interest on saving is increased but very few persons have known its reason. And same thing for yesterday news" SEBI bans 14 insurance companies" and you can see on Google search. But, have you tried to know its reason?, if not, know in following lines:
1. SEBI wants that all insurance companies should get permission from him for issuing all insurance products including ULIPS. Without his certificate, all financial institutes like SBI Life Insurance Company, ICICI prudential life, Reliance life, Meltlife India, Aviva Life and Tata AIG Life can not sell unit link insurance policies. That is the main reason for banning 14 insurance companies for selling ULIPs.
2. If you want to know a bone of contention of this case, you must know the debate between financial market regulator security exchange board of India and insurance market regulator insurance regulatory and development authority of India. SEBI is saying that insurance is financial product like mutual fund and so all these insurance companies should be registered under SEBI. But IRDA is saying,” no dear friend, you are telling total wrong because all the products sold are within the insurance regulation and it is a global practice. So, need not any registration under SEBI.
After this, Sebi issued the order:
“...In exercise of the powers...I hereby direct ... the (14) entities not to issue any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including ULIPs) having an investment component in the nature of mutual funds.”