Chennai, Feb 11 (IANS): Indian insurance regulator has formed a 15-member consultative committee (including Chairman and Convenor) to review the regulatory framework on managing the investments in the sector and for other aspects.

The Committee with a tenure of two years will be headed by Supratim Bandopadhyay, former Chairman of the Pension Fund Regulatory and Development Authority (PFRDA).

"With a view to monitor the dynamic financial markets on a continuing basis, and to review the regulatory framework on managing the investments in the insurance sector, and to advise IRDAI on developments in the economy, financial markets and on risk management, a consultative committee on Investments is hereby constituted," IRDAI said.

The Members of the committee are from private equity stock broking insurance, banking and mutual fund sectors and majority of them are from the private sector.

The new committee is in addition to the insurance Regulations Review Committee (RRC) and various sub-groups set up by the Life Insurance Council and the General Insurance Council in consultation with IRDAI earlier.

Incidentally, the RRC has nine members from the private sector insurance companies and three from the public sector and some of the sub-groups does not have any representation from the government owned companies which are far bigger than many private players.

"The legal stipulation that premium to be received upfront before any risk cover could be provided, solvency norms and the investment regulations have safe guarded the sector for the past two decades," a senior industry official told IANS preferring anonymity.