UAE issues new draft short-selling, borrowing rules

Wednesday, 9 November 2011 00:02 -     - {{hitsCtrl.values.hits}}

Reuters: The United Arab Emirates’ market regulator has published new draft rules on short-selling and borrowing, asking investors for feedback, as it looks to boost dwindling trade and attract more foreign investment.

The Securities and Commodities Authority (SCA) posted on its website the draft regulations on short-selling through authorised brokers, security lending and borrowing and other market regulations. Suggestions on the draft can be given until 17 November.

The new regulations will look to allow investors to short-sell, but SCA can ban short-selling under special circumstances, according to the draft.

Short-selling is not permitted in the UAE’s two markets.

The two markets - Dubai Financial Market <DFM.DU> <.DFMGI> (DFM) and Abu Dhabi Securities Exchange <.ADI> - have been considering new regulations as it looks to improve trading in the markets.

Some brokerages in the UAE have been forced to shut down as turnover on the DFM and the Abu Dhabi bourse slumped to seven-year lows in 2011, while Nasdaq Dubai - part of DFM - trades less than $3 million daily.

The new rules may improve UAE’s chances to be upgraded to emerging market status by index compiler MSCI, which is expected to take a decision by December. MSCI delayed its decision from June to allow it to get more feedback on UAE bourses’ new delivery versus payment (DvP) settlement systems, the international standard.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.

COMMENTS

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.