• India's Federal Government recently introduced the Securities and Insurance Laws (Amendment and Validation) Bill 2010 (the "Bill") under which a new panel will be established as the final decision-making authority for any disputes that arise between the financial regulators of the country.
  • The panel will be headed by the finance minister while the vice-chairman of the panel will be the governor of the Reserve Bank of India ("RBI"). Other panel members will include the Economic Affairs Secretary, the Securities and Exchange Board of India ("SEBI") and the Pension Fund Regulatory and Development Authority.
  • Disputes between financial regulators are currently dealt with through the applicable tribunals, the court system or backroom resolutions.
  • According to press reports, the Bill was introduced partly in response to the recent dispute between India's insurance regulator and capital markets regulators over certain unit-linked insurance policies ("ULIPs").
  • The Bill is expected to clarify that ULIPs will be a part of the life insurance business by introducing the relevant amendments to the Insurance Act 1938, the Securities Contract (Regulation) Act 1956 and the SEBI Act 1992.