Applications Supported by Blocked Amount (ASBA): New way to apply in IPO's

SEBI in a Retail Investor's Interest has Introduced new system "Applications Supported by Blocked Amount" (ASBA) Processan additional optional method for IPO application where instead of making payments by cheque, IPO bidding amount remains in investors account, but blocked by the bank until allotment is done. 

This alternate method has been exclusively for retail individual investors through participatory banks (SCSB's). Earlier, many retail investors faced various issues in getting the refund of amount, but Investors applying for IPO through ASBA will not have to face issues like this anymore. Although this system is already in place from May 1, 2010, retail investors are not aware of this and not using this facility.

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IRDA starts Nation-wide Grievance Call Center for Complaints against Insurance Companies

Are you having a problem with Claims or other issues with an insurance company and your insurer is not paying any attention to your complaint?For those facing problems with life insurance claim settlements, better times are here as IRDA (Insurance Regulatory and Development Authority) has started a new service where you can approach by phone or E-mail. You can now approach the IRDA on its toll-free number or on the contact numbers of special Designated Officers which is available on a click. 

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New ULIP Norms / Guidelines by IRDA effective September 1 2010

Insurance watchdog IRDA on Monday tightened the norms for ULIPs (Unit linked Insurance Products) after winning the battle with the markets regulator SEBI over control over ULIPs. Please find the brief summary of new guidelines which which has to be adhered by the Life Insurance Companies before September 1, 2010.

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SEBI IRDA War- Whats in it for investors?

Of late, ULIP or the Unit Linked Insurance Plans, have caught the eyeballs of investors in the insurance arena. It all started when SEBI, the stock market regulator, passed an order prohibiting 14 insurance companies from selling units of ULIP to investors. IRDA immediately came to the rescue to the insurance players asking them to continue their operations in spite of the SEBI order.

Lots of discussion has also taken place regarding its jurisdiction and multiple regulators. Also the issue is a little different when it comes to the investors. It should hardly matter to an investor who regulates an industry or certain products as long as there is regulation and it keeps the interest of the investor paramount.

The battle here is not between two regulators, say SEBI and IRDA, two industries, insurance and mutual funds or for that matter between two products viz.ULIPs and mutual funds. It is between transparency and opacity, it is between low cost and high cost. It is about being fair to the consumer.

Now the question arises that while choosing any investment product, what should an investor look for? As mentioned earlier, one should keep an eye on costs and in order to know the costs, transparency is a must.

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IRDA goes on to Clean Up ULIP Malpractices

The article mainly focuses on the SEBI-IRDA tussle, that may lead to a much improved product if more issues are addressed. And, for almost six months, the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) have been involved in a tussle to control unit-linked insurance plans (ULIPS). Insurance regulator IRDA and capital market watchdog Sebi has reemphasised that insurers should offer assured life insurance cover with ULIPs.

However, as its initial steps, the market regulator fired the first salvo last June, when it removed entry load on all mutual fund schemes (effective from August 1). And the high cost of Ulips immediately came into focus in lest that distributors would peddle only these because of higher commissions.

INITIAL STEPS?

* Declaration of commissions being paid to distributors

* Top-ups, pension plans to have risk cover; partial withdrawals only after five

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Insurance companies play safe in IRDA and SEBI tussle

Insurance companies have decided to play safe to avoid any confrontation with market regulator Sebi, which is locked in a turf war against insurance watchdog IRDA.

They have decided not to use terms such as net asset value (NAV) or assets under management (AUM) that equate their unit-linked plans (ULIPs) with mutual fund schemes. NAV refers to the market value of the assets of the scheme minus its liabilities, AUM is the market value of assets that an investment company manages on behalf of investors.

The move by insurers follows a decision by Sebi to ban 14 life insurance companies from raising funds through unit-linked insurance policies (ULIPs) which invest

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SEBI Vs IRDA tussle would make ULIP better

Unit-linked insurance plans (Ulips) have never quite managed to win over the true blue-blooded financial advisors. No wonder, theseSEBI-IRDA ULIP Row, Advisors are firmly on the side of SEBI in its tug-of-war with the insurance regulator (IRDA) to reign in Ulips. According to them, the outcome of the tussle - most likely a long-drawn affair - may actually make Ulips a better product, as, in their current avatar, Ulips fall short on cost-effectiveness , transparency and flexibility. SEBI has already benefitted customers of mutual fund by abolishing entry load last year.

 Ulips are insurance plans with disparate investment options and have captured the buyers’ imagination in the last few years.

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