SECP Suspends Guarantee Business of Crescent Star Insurance Limited
The Securities and Exchange Commission of Pakistan, or SECP, issued a Direction under Section 60 of the Insurance Ordinance, 2000, by suspending the guarantee business of Crescent Star Insurance Limited, or Crescent Star.
Crescent Star had provided guarantees of Rs. 229 billion without adequate collateral and proper reinsurance, thus contravening the regulatory rules.
In this regard, to enable Crescent Star to respond to these violations and further. ensure that legal procedure has been followed, SECP issued a notice to the company on January 31, 2024. Nonetheless, Crescent Star challenged the above notice in the Islamabad High Court. The Court went through the case and denied Crescent Star any relief while also directing the company to collaborate with the SECP in its ongoing proceedings.
It is an attempt to keep the insurance sector of Pakistan. intact and to implement regulatory requirements.
