SECP in­creases min­i­mum paid-up cap­i­tal for in­sur­ers

The Pak Banker - - NATIONAL -

IS­LAM­ABAD: The Se­cu­ri­ties and Ex­change Com­mis­sion of Pak­istan (SECP) has in­creased the min­i­mum paid up cap­i­tal re­quire­ment for in­sur­ance com­pa­nies.

A state­ment is­sued by the Com­mis­sion here Tues­day said that the cap­i­tal re­quire­ment was in­crease with the ap­proval of SECP Pol­icy Board. The Pol­icy Board has ap­proved an amend­ment to the Se­cu­ri­ties and Ex­change Com­mis­sion (In­sur­ance) Rules, 2002 whereby the min­i­mum paid up cap­i­tal for both non-life and life in­sur­ance com­pa­nies has been in­creased by an amount of Rs200 mil­lion.

A new rule 9 has been in­serted in the said rules un­der which the base­line paid-up cap­i­tal re­quire­ment for non-life and life in­sur­ance com­pa­nies have been pre­scribed as Rs500 mil­lion and Rs700 mil­lion re­spec­tively.

Fur­ther, the amount of min­i­mum paid up cap­i­tal will be net off any dis­count of­fered on is­sue of shares. These new cap­i­tal re­quire­ments would be ap­plied in a phased man­ner and the ex­ist­ing in­sur­ance com­pa­nies would be al­lowed a pe­riod of two years, i.e. till De­cem­ber 31, 2017 to meet the said re­quire­ment. At the time of en­act­ment of the In­sur­ance Or­di­nance, 2000, the min­i­mum paid-up cap­i­tal re­quire­ments for non-life and life in­sur­ance com­pa­nies were Rs80 mil­lion and Rs150 mil­lion re­spec­tively. In the year 2007, the paid-up cap­i­tal re­quire­ments for non- life and life in­sur­ance com­pa­nies were in­creased to Rs300 mil­lion and 500 mil­lion re­spec­tively in a phased man­ner.

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