ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has empowered the Commissioner (Insurance) and other officers of the Insurance Division to exercise the powers of a court as are vested under the Code of Civil Procedure for completion of proceedings or enquiries against insurance companies.
According to an S.R.O. 744 (I)/2020 issued by the SECP, the commission has delegated the powers and functions of the Commission to its Commissioner (Insurance) and the officers of the Insurance Division, to the extent of insurance companies, insurance brokers, Insurance surveyors and third party administrators only, whether listed or not.
The Commissioner (Market Development Policy and Regulation Department - Insurance Division) and Commissioner (Supervision Department - Insurance Division) will exercise powers to accord, give or grant approval, sanction, consent, confirmation, recognition, direction or exemption, subject to such conditions, limitations or restrictions as he may think fit to impose and may, in the case of contravention of any such condition, limitation or restriction, rescind or withdraw such approval, sanction, consent, confirmation, recognition, direction or exemption.
They can sanction issue of shares at discount on such terms and conditions as he deem fit and to allow extension in time to issue shares at discount and grant approval for extending period up to thirty days for allotment of offered shares that have been declined or remained unsubscribed by directors in a manner deemed fit by them, for public companies.
The said senior SECP officials can allow a company to issue further share capital to any person for cash or for a consideration other than cash and impose restriction on shares and debentures and prohibition of transfer of shares or debentures in certain cases in the matter of a company and to vary or rescind any order made under relevant section 272 of the Companies Act, 2017.
Executive Director/Director/Head of Department (Market Development Policy and Regulation Department - Insurance Division) and Executive Director/Director/Head of Department (Supervision Department - Insurance Division) have been empowered to authorize in writing one or more employees to inspect any record or document relating to any regulated activity; authorise investigations into the affairs of an insurer at its own motion and issue such directions to give effect to the Commission's orders or to prevent abuse of its process, including but not limited to, seeking the assistance of the local administration or Police.
In case of vacancy or unavailability of Executive Director/Director/Head of Department (Market Development Policy and Regulation Department - Insurance Division) and Executive Director/Director/Head of Department (Supervision Department - Insurance Division) the powers Page 15 of 15 and functions delegated to him/her through this notification shall stand delegated to the Commissioner (Market Development Policy and Regulation Department - Insurance Division) and Commissioner (Supervision Department - Insurance Division). This notification shall not affect anything done, order made, notification issued, show-cause issued, circular made, proceeding commenced, penalty imposed and/or collected, sanction granted, approval made, fee directed or collected, direction given, investigation, inspection or inquiry conducted or any other action taken or done under or in pursuance of the above referred superseded notifications, shall be valid and under lawful authority. Any pending proceeding under the superseded notifications shall stand transferred to the delegated authority, as provided in this notification forthwith, who shall proceed with the matter as it stands prior to coming into effect of this notification, it added.
Copyright Business Recorder, 2020