Banking regulator RBI and market regulator Sebi fear last month s Ordinance to resolve the dispute over regulating unit-linked insurance plans (Ulips) could infringe upon their autonomy and want it to lapse. What has particularly annoyed the two regulators is the formation of a joint committee with statutory powers to decide upon future disputes over such hybrid products. The regulators also point out that the Ordinance is at odds with the commitments on regulatory independence made by New Delhi at multilateral forums like the G-20 where it has a prominent and respected role. If Parliament ratifies the Ordinance, the joint committee ...

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