The instruction was issued after the IB found that the company was placing advertisements in television, asking people to enroll in its insurance plans despite being temporarily barred from doing business.[break]
The Board had halted business transactions of Asian Life on Jan 29 after it started distributing dividends without raising its paid-up capital to Rs 500 million as directed by the regulator in Sept, 2011. Asian Life currently has a capital of Rs 360 million.
Since then the company has not been able to sell new insurance policies and has to take the regulator´s permission before settling claims. It is, however, allowed to collect premiums on policies sold in the past.
The Insurance Board has said the company can conduct business as usual only after putting back all the money it had distributed as dividends in its coffer.
Last Sunday, when the deadline expired, the company reported it had recouped Rs 45.9 million of Rs 48.5 million that was distributed. The Insurance Board then gave it two weeks to collect the remaining amount.
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