Dispute over ULIPs (for interview perspective)

Ulips are hybrid instruments serving dual need of insurance and investment. and where a part of the amount paid by sub-scribers is invested and a small portion goes towards insurance pre-mium. SEBI passed an order in April this year saying that regulation of Ulips should be its responsibility rather than IRDA’s, as the funds were mostly invested in stock markets. Sebi had justified it by saying that in some of the products 90% of the money was channelised into markets and not insurance. On April 9, it had banned 14 insurance companies from selling ULIPs without its approval, saying they needed to register with the market regulator. This was opposed by IRDA, which asked insurance compa-nies to ignore the directive. The finance ministry intervened and asked both sides to seek legal recourse to the problem. 

June 15-22 Current Affairs

NATIONAL AND INTERNATIONAL UPDATES

India, South Korea to launch talks for civil nuclear pact

India and South Korea agreed to launch negotiations for a civil nuclear energy agreement, even as economic ties continued to expand after implementation of a comprehensive economic pact. This was discussed during a India-South Korea joint commission meeting in Seoul on Friday, which was chaired by Indian External Affairs minister S. M. Krishna and Korean Minister of Foreign Affairs and Trade Yu Myung-hwan. The negotiations are expected to pave the way for South Korea to export a nuclear power plant to India. South Korea was among the countries that had supported India in the Nuclear Suppliers Group lifting restrictions on civil nuclear trade.