LAHORE – The Securities and Exchange Commission of Pakistan on Thursday was restrained by the SHC from implementing Takaful Rules, 2012 issued by it while hearing a constitutional petition filed by five Takaful companies challenging the Takaful Rules, 2012.

The five Takaful companies that had filed the petition are Takaful Pakistan Limited, Dawood Family Takaful Limited, Pak-Qatar Family Takaful Limited, Pak-Qatar General Takaful Limited and Pak-Kuwait Takaful Company Limited.
SECP had notified the Takaful Rules, 2012 on July 16, 2012 under which conventional insurance companies had been allowed to carry on Takaful business through window operations. The Takaful companies had raised serious objections that the new rules would result in the distortion of the Takaful business in Pakistan and would allow conventional insurance companies to do Takaful business in a manner which would be against the principles of Shariah. However the SECP issued the new rules without considering these objections.
During the hearing of the petition the counsels of the Takaful companies contended that the new rules had been issued by SECP without considering the opinions of renowned religious scholars who had advised the SECP that the new rules were not in line with the principles of Shariah.
The High Court after hearing the counsels of the petitioners also issued notices to the SECP, the Deputy Attorney General and the Secretaries of the Ministry of Commerce, Ministry of Finance and Ministry of Law and Justice.