Friday, January 22, 2021

 Abu Dhabi


              The Securities and Commodities Authority revealed the ten rights of debt securities holders and the mechanism to protect these rights, whether the bonds were issued by joint-stock companies in the UAE and Saudi Arabia or by other parties.


Rights of UAE and Saudi Arabia stock market shareholders.
  Rights of UAE and Saudi Arabia stock market shareholders.

  Rights of holders of debt securities in the UAE and Saudi Arabia stock markets.


Among these rights, the bureau stated that unless approved by the bureau, the public issuance and sale of bonds is not allowed because these bonds must be listed on the market to accept market control and regulation in terms of their circulation and subsequent disclosure of relevant information and Make sure to dispose of it appropriately.


Simultaneously, it is stipulated that the issuance of debt securities does not conflict with the issuer's establishment documents, and these documents do not have any restrictions that prevent it from fulfilling the obligations and regulations related to the issuance and listing.

The authority requires that the source be established in a country outside the free economic zone to be under the jurisdiction of the authority.


The Authority pointed out that if the debt securities to be listed are secured debt securities, an asset trustee must be appointed to protect bondholders' interests. The trustee has the right to view any information or data related to the asset.


  Holder rights UAE stock market.



At the same time, a payment agent must be designated to pay returns and redeem bonds. The payment agent can perform the task of representing bondholders.


The bureau pointed out that if the bond issuer is a joint-stock company, it must sign an agreement with an independent representative to represent and protect debt bondholders' rights and interests. This includes that the bondholder's representative has the right to obtain any information related to these bonds, and the trustee in the secured bond can be the bondholder's representative.


She emphasized that foreign sources or founders' bonds in free economic zones must obtain her consent after completing the data and documents required by the system. She explained that the international sources of commercial open zones or the founders promised to be in the bond system. Article 18, Article 19, and Article 20 shall carry out continuous disclosures recognized by the system to achieve transparency and protect investors in the local market.

The Supervisory Authority stated that to protect investors and maintain the market's normal operation, the Supervisory Authority might require the source of bonds listed on the market to publish information that it deems appropriate, and he shall bear the expenses. If he does not promise to publish the information, the Administration may publish the relevant information after asking him to explain why not publishing it.


She pointed out that the committee must approve any documents or statements issued in the state in the name of the source party or on behalf of the source party to announce the acceptance of any debt securities. The document or statement must include a clear statement that the Administration has agreed to publish the document or statement.


The Supervisory Authority has clarified this so that investors will not fall into the deception of false advertisements or data. Simultaneously, it emphasizes that the Supervisory Authority is not responsible for the validity of the data that it agrees to release. However, the inspection by the Supervisory Authority is serious. If the data is found Incorrect, determine the responsibility of the website.


  Rights of U.S. stock market shareholders.


The authority stated that legislators require a set of sources of disclosure, especially regarding the reasons for the prospectus, audited financial reports, and continuous disclosure of events, developments, or undeclared information, which will fundamentally affect debt securities transactions or transactions The price or quantity, it occurs in the market or the issuer's ability to perform its obligations.

The China Securities Regulatory Commission stated that the "Commercial Company Law" sets out general provisions on the issuance of bonds by joint-stock companies, which stipulates the general framework for organizing companies to issue relations, and authorizes the Administration to issue laws that include detailed regulations on bonds, issuance, issuance, and listing. System.


The authority stated that bonds issued by a single loan give bondholders equal rights. The company shall not submit or postpone the date of the bonds' performance, except as clearly stated in the relationship issuance decision and the prospectus.


However, bondholders can require payment of the bond value before the maturity date for reasons other than the merger in the company's dissolution. After obtaining its consent, the company can propose to it that if any of the above two conditions are met, the interest will decrease during the remaining time of the loan term.


The Administration clarified that the rights of holders of non-public bonds issued by the company are specified in the agreement establishing these bonds. The agreement also includes the necessary procedures for bondholders to convene meetings, appoint any committees and voting rights, and all other matters related to this, as well as the conditions for their conversion into company shares, if they are convertible.


  Benefits for holders in the UAE stock market


The law stipulates that companies can issue transferable bonds, regardless of whether they can be converted into company shares, and the value of the bonds issued each time is equal. Unless specified in the prospectus, the bonds cannot be converted into shares.


If it is decided to convert shares, the bond owner is solely entitled to accept the bonds' face value received by the converter. Related parties have the right to choose to transfer or accept the bond value, and the company shall not force them to choose any of them.


The Market Administration approved the amendment to the terms of the Emotion Fund.




              Muscat Financial Corporation announced that it had obtained approval from the Capital Markets Authority to fundamentally modify the Al Machair Reet Fund's terms and conditions and modify the fund's investment objectives.


  Rights of Saudi Arabian Stock Market Holders


The company issued a statement on "Tadawul" stating that the amendment is to invest in income-generating properties in the two cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah, with a distribution rate of 55%-100% of the total asset value of the fund. Between.

And investing in income-generating properties in all cities in the Kingdom (except Mecca and Medina), but not more than 45% of the fund's total asset value.


The amendment stipulates that the fund can invest in income-generating properties outside the Kingdom of Saudi Arabia, with a maximum investment limit of 25% of the fund's total asset value.


Since the Fund will mainly invest in real estate assets that have been developed and available for use, the Fund may also invest in real estate development projects that do not exceed 25% of the total value of the beneficiary rights held by the fund, regardless of whether these projects are Its ownership, cash, etc., investment fund units approved by the Administration, and real estate companies.


Benefits of the Saudi stock market for holders


It stipulates that the fund will not invest in white land.


Muscat Financial Corporation clarified that the aforementioned change in investment objectives represents a "fundamental change" in the fund's objectives, requiring the unit owner's approval.


She continued. In this regard, an invitation will be announced shortly to participate in a special meeting of fund unit owners to vote on changes to the fund's terms and conditions.

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