New Delhi, July 27: Finance Minister Pranab Mukherjee Tuesday introduced a bill in the Lok Sabha to replace an ordinance issued last month to resolve all disputes between regulators over hybrid financial products like the popular unit-linked insurance plans (ULIPs).
The ordinance was issued after a public spat between the Securities and Exchange Board of India and the insurance regulator over who had jurisdiction on the ULIPs, the popular investment-cum-insurance products.
Introducing the Securities and Insurance Laws (Amendment and Validation) Bill, 2010, Mukherjee said it would address the differences of opinion among statutory regulators, which could arise in future.
It was also necessary to set up a joint mechanism to solve the disputes, the finance minister said in a statement.
The joint mechanism is "for resolving future differences of opinion as to whether any other investment or securities market instrument or a component of money market instrument falls within the jursdiction of the IRDA or SEBI or RBI or PFRDA," he added.
The bill seeks to amend the Reserve Bank of India Act, 1934, the Insurance Act, 1938, the Securities and Exchange Board of India Act, 1992.
The committee will have the finance minister as its chairperson.
The Reserve Bank of India Governor, finance secretary, secretary (Financial Services) and chairpersons of the Insurance Regulatory and Development Authority, the Securities and Exchange Board of India, and the Pension Fund Regulatory and Development Authority will be its members.