The Abu Dhabi Securities Exchange (ADX) has released the names of four investors who have been banned from buying shares, according to a statement to stock brokerages seen by The National yesterday.
The four individuals – three men and a woman – are prohibited from buying shares for up to three months, the Abu Dhabi bourse said yesterday.
Furthermore, the four are forbidden to provide a power of attorney to another individual to buy shares on their behalf, a bourse statement said.
They are only allowed to resume buying activity on March 23, it added.
The Securities and Commodities Authority was understood to have ordered the suspension of four investors for committing violations punishable under current rules, Al Bayan newspaper reported on December 29. The newspaper did not reveal the name of the investors or the allegations against them.
The UAE market regulator has been clamping down, particularly in the scope of insider trading and excessive margin lending, since market turmoil in UAE equities over the past three months on concerns over falling oil prices.
The Abu Dhabi Securities Exchange General Index and Dubai Financial Market General Index have both declined about 10 per cent over the past six months.
The regulator has also appointed banks to submit a technical proposal for a framework to help distinguish between trades made by banks on behalf of clients and trades made using a bank’s own money.
The UAE central bank, in a separate move, recently asked lenders to reveal bank lending against shares, and was understood to be studying proposals for new rules to cover this type of activity.
halsayegh@thenational.ae
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