The Lok Sabha today passed a Bill to replace the Ulip Ordinance that seeks to set up a joint mechanism to address the issues of jurisdiction between the financial sector watchdogs. The Securities and Insurance Laws (Amendment) and Validation Bill, 2010, provides for setting up a joint body under the chairmanship of the Finance Minister, and with representations from the four financial sector regulators and the Finance Ministry. The Bill states that the Reserve Bank Governor will be the vice-chairman of the joint committee. However, there were apprehensions expressed by RBI over its autonomy.Allaying these fears, Finance Minister Pranab Mukherjee told the Lok Sabha, it was true there were lots of apprehensions whether we are going to dilute the regulators' independence or autonomy. It will only be in the case of jurisdiction disputes between the regulators that the joint mechanism will be used. Mr. Mukherjee further assured that the joint mechanism will not deal with other areas and only the regulators can refer the matter of jurisdiction to the committee. The minister clarified that government will not interfere with the monetary authoritary of the Reserve Bank.The minister further said the government has to interfere, if there is contradiction between the regulators and the overall interests of the economy suffers. Our correspondents reports, The governmnet issued the Ulip Ordinance on June 18, after the capital markets regulator Sebi and insurance watchdog Irda locked horns over regulation of Unit-linked insurance products (Ulips) and could not seek a joint legal mandate to sort out the issue, as suggested by the Finance Ministry.The turf war began when Sebi had on April 9 banned 14 life insurers from raising money from Ulips,and Irda countered the ban by asking insurance companies to ignore the market regulator's order. As the matter could not be resolved, the Finance ministry asked the regulators to get a legal remedy, following which Sebi moved the Supreme Court, which is yet to decide on the matter. In the meanwhile, the government came out with an Ordinance late June, which gave the jurisdiction of regulating Ulips to Irda. The Ordinance also sought to constitute a joint mechanism between the regulators and finance ministry to sort out any future tussle between financial sector regulators over jurisdiction of hybrid products.