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ANOTHER
ET–InstaPOLL
Do employees with higher emotional quotients SEBI OVERRULED
make a difference in their jobs?

Irda wins
Yes: 82%, No: 15%, Can’t say: 3%
TO DAY ’ S Q U E ST I O N Uncertainty over Ulips ends as
Is silver a better investment than gold at this government promulgates ordinance

STAGE OF LIFE
point of time?
To vote, log on to to amend laws that will revive sales
http://economictimes.indiatimes.com
Y O U R G A T E W A Y T O I N D I A

Ulip battle
A clutch of top executives is enacting new roles in the
field of theatre, leaving the humdrum of office behind

Our Bureau Hari Narayan, chairman Irda told Sun-

Toxic trail that NEW DELHI
continues to haunt INSURANCE industry regulator Irda
has emerged the victor in a high-pro-
Questions remain over India’s file tussle over the regulation of so-
preparedness to deal with called unit-linked insurance plans, or
Ulips, with the government ruling that
another Bhopal-like disaster it and not the market watchdog Sebi
would oversee the product.
The government is “clarifying by
way of an explanation that life insur-
ance business shall include any unit-
linked insurance policy or scripts or
any such instruments,’’ said a state-
ment from the press information bu-
reau. “This would set at rest all the is-
sues regarding Ulips between the two
financial regulators.’’
The government promulgated an
ordinance late on Friday to amend
four major laws that could revive the
sale of Ulips and force the mutual fund
industry to look for new avenues to get

Politicking without conviction
investors.

Role of volunteers ULIP SERVICE
SPECIAL REPORT: P 6 What happened?
The Government has issued an ordinance,
which effectively makes insurance regulator
IRDA the winner in its tussle with market
There’s no regulator Sebi
easy money What does the ordinance do?
Gives regulatory control over ULIPs to IRDA,
Top ad honcho Prasoon Joshi knocking down Sebi's argument that because
says there is no easy money money collected under these policies are
and realises its importance invested in shares it should have
jurisdiction over these products..
Who benefits?
Clearly, insurance companies. They will
be able to resume sale of ULIPs, which
was on hold due to regulatory tussle
“This will completely end the uncer-
tainty regarding unit-linked insurance
plans,’’ said Kamesh Goyal, chief exec-
utive, Bajaj Allianz Life Insurance.
“Ulips have also turned extremely cus-
tomer-friendly after recent measures
taken by the regulator to bring down

Bridging retirement gap surrender charges.”

Domestic shores safer
Irda and Sebi got into a legal battle
over Ulips regulation after the mar-
kets regulator on April 9 banned 14
MONEY & YOU: P 8 insurers from selling Ulips. Sebi with-
drew the ban when bureaucrats bro-
kered a truce, but only to revive it.
Sebi moved the Supreme Court to
The valley of club various public interest litigations
against Ulips and resolve the issue of
landscapes alleged mis-representation and the is-
sue of jurisdiction.
Ladakh is a treasure secured The Supreme Court will have to
by the Himalayan and take cognisance of the Ordinance
Karakoram ranges when it hears the case on July 8. “The
government’s clarification will en-
hance policy holder confidence as it
settles the issue over regulation”, J
dayET in an interview.
The ruling is a relief to existing poli-
cy holders who were unsure of contin-
uing with the product and new in-
vestors were wary of buying them.
Ulips are hybrid products incorpo-
rating investment and insurance cov-
er. They account for more than 85%
of the portfolio for life insurers. Insur-
ers can now sell new Ulips launched
after April 9, 2010.
The government will amend the
RBI Act, the Insurance Act, the Sebi
Act and the Securities Contract Regu-
lation Act to include Ulips, scripts or
any such instruments under the life
insurance business. The Bill will be
introduced in the monsoon session of
Parliament, said a senior finance min-
istry official.
A high-level committee under fi-
nance minister Pranab Mukherjee
would be set up to sort out all issues
over jurisdiction of
Who loses?
Mutual Funds. Distributors may
choose to sell ULIPs over MF
schemes since insurance cos pay
hefty commissions, which
MFs don’t
JAYEETA
the hybrid products. Other members
will include the finance secretary, sec-
retary in the department of financial
services and financial sector regula-
tors. Over the past few weeks, the Irda
has tightened the norms for Ulips to
raise the risk cover they offer and blunt
Sebi’s criticism that Ulips are collective
investment schemes as the risk cover is
limited to 2% of the premium. It has
also made it mandatory for insurers to
offer a life cover with pension plans.
The regulator has set July 1 as the
deadline for implementing the new
Ulip guidelines.
“The Irda had already started ad-
dressing some of the issues over which
there were concerns from some quar-
ters.Now with this ordinance the dis-
pute itself has been resolved,” said SB
Mathur, chief executive, Life Insurance
Council. In fiscal year 2009-10, Ulips
accounted for more than four-fifths of
the total insurance premium of around
Rs 2.60 lakh crore that was collected.
Vaishali Dar & Ravi Teja Sharma
NEW DELHI
IN ANOTHER life, marcomm consult-
ant Smita Mazumdar would want to be
born as what she is today—a successful
executive, a painter and a huge soccer
enthusiast, et al. But in this life, she has
been slipping into many other roles—
sometimes Teruko, a Japanese girl or
Priyanka, a young woman who’s being
stalked by an unknown man.
The deputy director at Thot Consul-
tants, a marketing communication
firm in Delhi, acts in plays. It’s a pas-
sion, she says, that allows her to ex-
plore different facets of life, human
persona and behaviour as well as to get
into someone else’s life, even if for a
brief time. “When on stage, I get into a
different world altogether leaving the
hum-drum of office behind.”
Well, read between the lines. Ms
Mazumdar is part of a band of corpo-
rates who flip between corporate
boardrooms and greenrooms of the-
atres with elan, fulfilling a passion they
have nurtured for years.
“You eke out time,” says Avijit Dutt,
who is president marketing at Olive
Telecommunications and has been in
theatre since 1973. His flirt with the-
atre started when he joined St Xavier’s
College in Kolkata in the early ’70s
where he did a few Jatras as well.
When he later joined advertising, he
found the profession had a very
favourable view of theatre. “Now, the
jugglery has become a fine art. And the
BlackBerry helps too,” he exclaims.
As any play requires a minimum of
40-50 rehearsals apart from the time a
person needs to take out for shows,
Mr Dutt tries to leave office for his re-
hearsals much before rush hour traf-
fic. Sometimes, he is back in office af-
ter rehearsals as well.
“It can be a transcendental experi-
ence, much like religion,” says British
born, Indian theatre director and teacher
Barry John. Over the years, he has acted
and worked with a number of people
from the corporate world including
Vivek Mansukhani of Ford Foundation
International Fellowships Program, Ravi
Dubey of Tata and Kabir Seth among
others. It could also be to get away from
monotony and materialism, he says.
But he agrees that the corporate lot
does bring in a more mature, educated
and well-heeled perspective to the
theatre groups they join. “Travel itself
is an education and they also love to
see theatre in places they travel to,”
says Mr John.
But more importantly, they bring a
professional edge to the world of the-
atre. They believe in higher standards
and a higher quality product, which is
what theatre requires today. “We are
definitely pushing the envelope on
quality,” adds Mr Dutt.
“Vivek is always very fussy about cos-
tumes, posters, designs and brochures.
He always wants them top quality,” re-
calls Mr John who has worked with
him over the last few decades.
Many of them admit that they would
have taken up theatre as a full time pro-
Vivek Mansukhani
(left) of Ford
Foundation in The
Complete Works
of Shakespeare
fession had it been well-paying. Sanjiv
Desai, who is a senior partner at
Transearch India, a global executive
search firm would certainly have. He
was bitten by the acting bug at age ten
when he watched the Raj Kapoor clas-
sic ‘Mera Naam Joker’ in 1970. But
family pressure and tradition too him to
engineering which was a highly regard-
ed profession in the 70s.
“I would have definitely jumped into
it,” says Desai. He gets around Rs 1,000
per show for a Aamir Raza Husain play
which barely covers the cost of fuel to
get to and from rehearsals. Some the-
atre groups pay a tad more. But it’s not
enough to make a living.
“Theatre involves serious-minded
people, those who could not forego
their profession as well as their passion
but preferred to balance the two. If
there was money involved then these
people would have worked full-time.
But their dedication is simply outstand-
ing, as they travel miles to come togeth-
er for rehearsals,” says theatre director
Feisal Alkazi whose plays are largely
based on gender issues and has worked
with a number of corporates in the past.
It’s the passion that brings them to
theatre. But luckily for theatre, their
contacts and influence in the corporate
world sometimes helps in securing
sponsorships. “It helps in getting spon-
sors. You are a little more aware about
where you can get help from,” says Mr
Dutt. Corporates are well connected
people and are an asset to have on a
production, Mr John adds.
Joy Michael, who runs theatre group
Yatrik says her main objective when she
started the group about 45 years back
was to get the corporate world involved
in theatre as it is in other countries.
 Family support: P 3

W H AT ’S
N E W S
Bhopal gas case: GoM
mulls legal options
New Delhi: The reconstituted Group of

Soulful melodies Ministers met for a second day on Saturday to

Can’t go Gaga in India
consider legal options available before the
government and to talk on the health issues
relating to the victims of the Bhopal gas tragedy.
There were discussions on the Madhya Pradesh
BACKPAGE: P 12 government’s special package, which had been
finalised. Home minister P Chidambaram, who
heads the reconstituted GoM, said: ”We
discussed all pending legal issues and options
available to the government after the judgement
of a trial court.” The ministerial panel
FOOD FOR YOUR SOUL deliberated on the possibility of the government
approaching the Supreme Court with a curative
Every Sunday Rs 1.50 per copy petition against the dilution of charges in the
To book your copy Bhopal gas leak case. The curative petition issue
SMS STREE to 58888 is said to be high on the priority list of the GoM
Or write to us at in the light of outrage following the June 7
crm.mumbai@timesgroup.com judgement of the Bhopal trial court, sources
said. While the panel may well suggest a
or call on 022-39898090 curative petition, the chances of it actually lead-
Timings - Mon to Sat ing to the reframing of charges under a different
(10am to 6pm) section of the penal code appears to be distant.
or ask your local vendor
 FULL REPORT: P 3
Oz goes Down Under on student visas
Ishani Duttagupta
NEW DELHI
ON JUNE 17, the Victorian police arrested a
teenager for the murder of Indian accounting grad-
uate Nitin Garg, an incident in January that trig-
gered an ugly racial row between Australia and In-
dia. Significantly, after the arrest, Australian au-
thorities told reporters: “We don’t believe it was
racially motivated.” “Victoria Police at all levels are
engaging with the Indian community and other
communities to assure them that Australia is a great
place to live and it is usually a safe place to live.”
Yet, despite the Aussie assurances, many Indian
students and workers who plan to migrate overseas
this year are giving Down Under a skip. It’s almost cer-
tain now that the number of Indian students going to
Australia will take a big hit in 2010, and some experts
even see a 75% decline. The impact of safety concerns
will definitely have a fallout on the overall numbers,
says Harmeet Pental, regional director, South Asia,
IDP Network, a global education services provider.
Australia has received over 2.67 lakh global stu-
dent visa applications in the fiscal year to May 31,
2010. The figure represents a fall of over 18% when
compared to the record figures of 2008-09. “While
application numbers for student visas have fallen, it is
important to note we are still receiving large numbers
of applications. This decrease is reflected across most
of Australia’s student visa markets, including our
SALAM
largest markets in India and China,” says a spokesper-
son for the Australian High Commission in India.
Indeed, Fall 2010 will be a tad different from previ-
ous years. A combination of factors such as stricter
immigration norms, changing dynamics in the glob-
al job market and incidents of racism in some georga-
phies is reshaping the decisions taken by Indian stu-
dents on overseas education. Some are actually put-
ting their overseas studies on hold for a year or two,
despite having got their visas stamped. Many of them
prefer to stay back in India and work–at least for now.
Recent changes in Australia’s skilled immigration
programme, for instance, will remove incentives for
certain foreign students who seek permanent resi-
dence after low-quality courses. A new skilled occu-
pations list–which decides on points gained for per-
manent residence–will require refocusing for some
education and training providers. Earlier, the Aus-
tralian government had made changes to the stu-
dent visa programme to make sure only genuine
students, who have the financial capacity to live and
study in Australia, are granted visas.
“The delinking of migration from education and
the introduction of an annual skills occupation list
has caused uncertainty for students seeking to work
in Australia on completion of courses and those look-
ing at possible migration opportunities. Besides, a
dramatic increase in the value of the Australian dollar
is making education very expensive and not much
cheaper than the UK,” says IDP Network’s Pental. In
the region, countries such as Singapore are gaining
an advantage in attracting Indian students this year.
The country has been positioning itself as an educa-
tional destination for some years in India and this
time, the availability of good jobs, is providing many
students with a reason to go there. Singapore has a
wide range of world class educational institutions and
provides a safe and cosmopolitan environment.
 US scores high on safety: P 3