As part of the efforts of the Securities and Commodities Authority (SCA) to protect investors; promote sound and fair practices; and create a favorable climate for investing in securities, the financial markets operating in the country have started taking actions to implement the decision issued recently by Chairman H.E. Eng. Sultan Al Mansoori on dealing with public joint stock companies suspended from trading, a move that is expected to have positive implications for investor confidence in the country’s markets.   

Under the decision, which answers the demands of an important segment of investors, companies suspended from trading will be traded on a separate screen, the “Second Category Screen”. Also trading on this screen are companies with accumulated losses of 50 percent or more of the capital, based on their last audited financial statements (the 2019 audited annual financial statements will be examined to transfer listing to the second category on July 1, 2020), in addition to companies suspended from trading for a period of six months or more. These companies will be also placed on the Watch List to assess the extent of their compliance with the listing and disclosure requirements. Companies placed on the list must take the necessary actions to regularize their status and comply with the disclosing requirements.

The decision, which enables investors to make decisions regarding their investments in financially distressed companies while enough safeguards have been put in place for their protection, will enter into force early next month. Procedures relating to the completion and testing of the technical system are underway at the Abu Dhabi Securities Exchange and the Dubai Financial Market to make sure that it will be launched on the specified date in line with the measures the country has been taking to ease the restrictions imposed earlier to combat the coronavirus pandemic, and as part of a plan to bring the economy back to normal.  

For further details on the decision, please see the link below: 

SCA Board, chaired by His Excellency/Sultan Al-Mansoori, approves the mechanism of dealing with joint-stock companies suspended from trading