Abu Dhabi: The Emirates Securities and Commodities Authority (SCA) said Saturday that it will fine-tune the stock market regulation to bring it in line with the latest practices of international financial markets.
"The SCA continues to develop a number of rules and regulations to boost the legislative infrastructure of the UAE's financial market sector, while on the other hand, it continues to organise awareness and counselling campaigns to serve the interest of all stakeholders and concerned parties in that sector," the SCA said in a statement yesterday.
Abdullah Al Turifi, SCA Chief Executive Officer, said the SCA was striving to develop further the legislative system of the UAE's financial market and had input some necessary amendments into the rules and regulations to strengthen the legislation further to raise them to the level of those of the international markets.
Sultan Bin Saeed Al Mansouri, Minister of Economy and SCA Board Chairman, issued Ministerial Decree No 518 of 2009 on the rules and regulations of Corporate Governance and Institutional Code of Conduct, which will be compulsory from May 1, 2010.
The minister also issued other decrees, including a decree regulating the "Custodian" Stock Exchange which allows the regulation of new activities needed on stock markets in the country.
Brokerages
Other decrees include Resolution 30/R of 2009 amending the brokers' by-law, including Article 1 and 17 of the by-law which allows a brokerage company to trade in its name and for itself.
The amendments include rules and regulations governing the practice of a brokerage company trading in securities in its name and for itself, which must be done after getting approval from the SCA and in accordance with the rules indicated by the resolution.
As part of market supervision, the SCA promises to be vigilant and proactive. Last year it cancelled the licences of two brokerage companies. The SCA also reviewed 83 complaints by investors and companies and suspended 11 investors, three brokerage companies and brokers' representative, as well as seven non-brokers' representatives.
