UAE to allow trading in share offer rights
The UAE’s securities regulator has decided to allow investors to trade subscription rights for share offers, the regulator said on Monday.
The reform allows a shareholder who does not want to or cannot subscribe to a share issue to sell the rights, the Securities and Commodities Authority (SCA) said in a statement.
“The regulation will provide new investment options and give greater depth to local financial markets,” it said.
The SCA also said it had decided to make the use of machine-readable mark-up language XBRL, a global standard for exchanging business information, compulsory for listed public joint stock companies and brokerage firms.
The system will be introduced in the UAE from the start of 2014, when annual reports for 2013 will be released using it.
The UAE is seeking to make its financial markets more attractive to foreign capital. On Tuesday, index compiler MSCI will decide whether to upgrade the UAE from frontier to emerging market status.
Saudi Arabia, the Arab world’s biggest stock market, introduced trading in subscription rights for share offers last November.
By Reuters, June 10, 2013