Regulator is reviewing regulation on bank lending against shares
The UAEs Securities & Commodities Authority (SCA) plans to review regulation on bank lending against shares, it said in a statement after a meeting between the heads of the SCA, central bank and Abu Dhabi and Dubai exchanges.
It will also set up a technical committee to monitor the markets activities.
The announcement follows the plunge in Arabtec Holdings share price, which quadrupled in the first four months of the year before dropping in May and June. The uncertainty surrounding the stock has caused criticism from investors demanding greater transparency.
On 3 July, the SCA said it is also investigating whether companies listed on the UAEs stock markets meet the standards of regional regulation and international best practice. It urged investors to make decisions based on financial analysis rather than market rumours.
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