Sebi, Irda to approach high court by April 29

Capital market regulator Securities & Exchange Board of India (Sebi) and Insurance Regulatory & Development Authority (Irda) are likely to file a joint application in a high court by April 29, seeking clarification on the regulation of unit-linked insurance plans (Ulips).

A source close to the development said Sebi has indicated that the two regulators will file the joint application before April 29 responding to a public interest suit in the Bombay High Court.

Last Monday, Finance Minister Pranab Mukherjee had asked the two regulators to move court at the earliest to resolve the ambiguity over the regulation of Ulips.

Before approaching court, the two regulators have to exchange the draft document to file the joint application and also decide on the court, and work out the cost structure.

Irda framed the contours of the draft and sent a copy to Sebi last week. Today Sebi agreed to share the cost of going to court, but did not decide on which one to go to, a source said. Irda has suggested the regulators should avoid locational advantage to any parties and, therefore, not go to the Bombay or Hyderabad High Court.