In continuation of its objective of improving liquidity in the market and introducing international best business practices in the UAE, the SCA has recently issued four more regulations (“Regulations”). It is important to note that the Regulations have not been published in the Official Gazette. We would expect publication to take place within the next month. These Regulations, when implemented, would be landmark regulations. The four Regulations are:

1. SCA Board Decision No. 48 of 2012 concerning the Regulations as to securities short selling (“Short Selling Regulation”):

Selling shares not owned by the seller at the time of sale is an activity that has always been prohibited by the SCA and the SCA has issued several notices to market members emphasizing this prohibition with warnings of severe penalties and cancellation of licenses to any person engaging in such activities.  The SCA has now legalized short selling.