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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
PIB App5 Market Risk
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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB A5.8.2 Guidance



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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

1. Sub-underwriting is a commitment given by one firm to someone other than the IssuerG or seller of the SecuritiesG to sub-underwrite all or part of an issue of SecuritiesG . The net UnderwritingG position calculated in PIB Rule A5.8.6 will also be used in calculating the net UnderwritingG ExposureG under Rules PIB A5.8.11 to PIB A5.8.14.
2. The net UnderwritingG position or reduced net UnderwritingG position arising from UnderwritingG or sub-underwriting a rights or WarrantsG issue should be calculated using the current market price of the underlying SecurityG for the purposes of the Equity Risk Capital RequirementG or Option Risk Capital RequirementG . However, the risk Capital RequirementsG will be limited to the value of the net UnderwritingG position calculated using the initial issue price of the rights or WarrantsG . Where there is no market price because the rights or WarrantsG are in relation to a new class of SecuritiesG and the initial price has not been set the net UnderwritingG position or reduced net UnderwritingG is the amount of the commitment.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]