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As part of its role to regulate and promote the development of the UAE financial markets, the Securities and Commodities Authority (SCA)—following its standard approach, invites feedback from all stakeholders before enacting new regulations governing “private shares”, which are defined in the draft regulation as “___”.
All stakeholders in the UAE capital markets, including investors, brokers, financial analysts, scholars, media figures, and others are invited to review the draft text of the regulation—whose provisions apply to companies wishing to issue special classes of shares—and provide their feedback and inputs no later than March 11, 2022. All the inputs and feedback provided will be taken into consideration while arriving at the final version of the regulation.
The draft regulation includes 15 articles covering, inter alia, definitions and scope of application. Chapter I lays out the conditions for and methods of issuing private shares and the obligations of companies issuing and listing private shares. Chapter II, on the other hand, includes articles dealing with the rights and obligations related to private shares, rights of the issuer company, the rights or constraints upon transfer, the right to object to decisions related to private shares, and penalties for non-compliance.
It may be noted that the draft published on the website is preliminary, and some of its provisions may be amended before it is finalized. The SCA appreciates and welcomes feedback and comments on the draft regulation by email at legal_affairs@sca.ae.
The complete draft regulation can be accessed from the link below:
Press here to visit the page
