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SCA sets up body for tighter supervision

Haseeb Haider (haseeb@khaleejtimes.com)
Filed on July 8, 2014

The economic regulators reviewed the performance of the stock markets in light of Arabtecís share-price plunge, which had its negative impact on the overall market.


The Securities and Commodities Authority, or SCA, the UAE’s financial market regulator, has said it would tighten supervision of the stock exchanges to check sharp fluctuations in shares and minimise its impact on the bourses.

“A high-level committee of experts from the UAE Central Bank, SCA and share markets will keep a close eye on all transactions, which impact the rise and fall of the market,” the SCA said in a statement on Monday.

UAE Minister of Economy Sultan bin Saeed Al Mansouri chaired a high-level meeting and reviewed the situation arising out of the recent turbulence at the stock market, which led to the erosion of share prices by 60 per cent in June.

Sultan bin Nasser Al Suwaidi, Governor of the UAE Central Bank; Essa Kazim, chairman of the Dubai Financial Market; Abdullah Salem Al Turifi, chief executive officer of the SCA; and Rashed Al Baloushi, chief executive officer of the Abu Dhabi Securities Market, also attended the meeting.

The economic regulators reviewed the performance of the stock markets in light of Arabtec’s share-price plunge, which had its negative impact on the overall market. The meeting reviewed reports prepared by the technical teams formed by the SCA and central bank on markets trading.

The meeting representing all key regulators agreed to review and amend regulations regarding lending by banks against shares if found necessary.

Other decisions include the setting up of a permanent technical committee from the SCA, the central bank, the Abu Dhabi Securities Market and the Dubai Financial Market to follow up transactions that impact markets to ensure soundness and integrity of trading, and ensure the absence of any suspicion of the manipulation of securities’ price.

The committee will strictly monitor statements of CEOs and securities analysts to ensure that they are transparent and truthful. It will review abnormal rises and falls in the markets and submit recommendations for taking corrective actions.





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