KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has fined three insurance companies and recovered penalties totalling Rs421,000 on grounds of non-compliance with statutory deposit requirements, said a press release issued by the SECP on Friday.
The insurance division of the SECP also disclosed that it is in the process of formulating regulations for micro-insurance sector. A task force comprising representatives of the SECP, State Bank of Pakistan and other organisations was constituted on November 23 last year for this purpose.
There’s more
The regulator has also issued an order against a partnership firm for operating an illegal commodity exchange. The firm violated a section of the 1969 Securities and Exchange Ordinance by providing unauthorised trading facilities in cottonseed oil futures contracts, posing a risk to the deposits of numerous investors.
A penalty of Rs10 million has been imposed on the two partners of the firm. Furthermore, the SECP – through a communique – has cautioned the public to trade commodities through the National Commodity Exchange Limited (NCEL). NCEL is the only registered commodity futures exchange in the country and provides an authorised trading platform in various listed futures contracts, including metals and agriculture products.
Published in The Express Tribune, January 8th, 2011.
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