CCP fighting for survival LEGAL HURDLES

 KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has initiated winding up proceeding against eight insurance companies in the court of law for not complying with necessary legal requirements.In a notice released at the Karachi Stock Exchange on Monday, the SECP notified those companies as: Beema Pakistan Company Ltd, Business and Industrial Insurance Company Ltd, Pak Northern Insurance Company Ltd, Pakistan Guarantee Insurance Company Ltd, Platinum Insurance Company Ltd, Progressive Insurance Company Ltd, Standard Insurance Co. Ltd and Sterling Insurance Co. Ltd.The SECP also said that two other insurance companies, namely Delta Insurance Company Ltd and Gulf Insurance Company Ltd were in the process of liquidation.The apex regulator warned: “the public at large is hereby informed and notified in their own interest regarding the status of the companies.”Giving the reasons for the action against the insurance companies, SECP stated: “All insurance companies are required to operate in compliance with the requirements of the Insurance Ordinance 2000 and Companies Ordinance, 1984.”The SECP stated that “in exercise of its power to administer the laws of insurance and as a regulator of the corporate sector, (SECP) takes appropriate action against the companies that fail to meet the requirements of law.”It observed that the winding up proceedings against the above eight insurance companies was initiated “on account of non compliance of various provisions of law.”