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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
PIB App5 Market Risk
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • Calculating the Net Underwriting Position

    • PIB A5.8.6

      An Authorised FirmG must calculate a net UnderwritingG position from the date of initial commitment until the UnderwritingG process ends, as the initial gross commitment adjusted for:

      (a) UnderwritingG or sub-underwriting commitments obtained from others since the time of initial commitment;
      (b) purchases or sales of the SecuritiesG since the time of initial commitment;
      (c) any allocation of SecuritiesG granted or received, arising from the commitment to underwrite the SecuritiesG , since the time of initial commitment; and
      (d) in the case of sales in the grey market, as defined in PIB Rule A5.8.5, any sales of the SecuritiesG as at the time of initial commitment or since the time of initial commitment is subject, in both cases, to the following conditions:
      (i) any sales of the SecuritiesG as at the time of initial commitment must be confirmed in writing at the time of initial commitment;
      (ii) sales must be net of any purchases in the grey market; and
      (iii) any allocation of SecuritiesG granted or received, arising from the commitment to underwrite the SecuritiesG , since the time of initial commitment.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB A5.8.7

      If the allocation of SecuritiesG has not been fixed, an Authorised FirmG must calculate the gross amount of its commitment, for the purpose of PIB Rule A5.8.6, by reference to the maximum amount it has committed to underwrite until the time the allocation is set. An UnderwritingG commitment may only be reduced under this RuleG on the basis of a formal agreement.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB A5.8.7 Guidance

        Allocations may arise, after date of initial commitment, from the agreement to underwrite. For example, obligations or rights may be allocated to or from the IssuerG , the underwriting GroupG or syndicate.

        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]