Chapter 4 - Markets Flashcards
Personal Disclosure Threshold?
5%
Company disclosure threshold?
10%
Market Notification Threshold?
10% increasing to 20%
Conditions for suspension of listing?
- Ceasing to satisfy a condition for listing.
- Shareholders’ equity falls below 50% of capital.
- Market value of the securities listed falls below 60% of their nominal value
- AGM votes to reduce its capital
- Failure to issue annual, half-yearly or quarterly reports
- AGM passes a resolution to sell the greater part of
the company’s assets
Conditions for cancelling listing?
- If a resolution is passed to dissolve and liquidate the company.
- If the listing of the securities remains suspended for, or beyond, a period of six months.
- If any radical change in the main activity of the company occurs.
- If the company discontinues its activity.
- If the company is merged with another company or companies by way of a merger and ceases to exist
What reports must a Market provide to SCA?
- Daily report on trading movements
- Daily price bulletin
- Mid and Monthly report on trading movements
- Annual report on trading movements
All include: types of securities traded, the
price of each, the quantity of securities traded and the total number of transactions
Pre-Listing Disclosure Requirements
- Application Form
- Report from Board of Directors including description of company and disclosure of shareholders and directors
- Financial Stataement covering previous full year
How long after an “Offthe Floor” trade must the Market be notified?
2 days
SCA Notification Threshold?
5% + each 1% thereafter
Which form of Trades can be conducted “Off the floor”?
- Transfers of ownership between spouses and relatives to the second degree.
- Transfers of ownership taking place as result of inheritance or wills or gifts not made against
counter-value to official charitable bodies in the State. - Transfers of ownership taking place pursuant to court order.
- Transfers of ownership taking place pursuant to an amicable settlement with a financial institution.
- Transfers of ownership taking place between persons whose names appear on one single certificate
of ownership. - The sale of securities in a public auction.
What is the permitted range of price movement across one day?
15% of previous closing price
What is the mandatory blackout period for equity trading of listed stocks?
15 days prior to AGM, and 15 days prior to financial statements
How soon after approval for listing must a company deliver a copy of its register of shareholders to the clearing?
1 week
What are the requirements for Cat 1 Listing in the UAE?
- The company is registered with the Ministry of Economy & Commerce.
- A period of not less than two years has lapsed since the incorporation of the company, in respect of which period there have been issued two balance sheets
- The company has obtained the Authority’s approval for listing.
- The company’s paid-up capital is not less than AED 25 million or 35% of the subscribed capital, whichever is higher.
- The shareholders’ rights are equal as regards each class of the shares issued by the company.
- The shareholders’ equity in the company is not, at the time of submitting the application for listing, less than the paid-up capital.
- It is demonstrated that the company’s ordinary general assembly has been held at least once a year.
- The company is obligated to publish its balance sheet and business results in the daily published media before its shares are permitted to be traded in the market.
- Any other conditions as the board from time to time prescribe
Minimum value of debt to qualify for listing?
AED 50mn
