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  • PRS 2 Price Stabilisation

    • PRS 2.1 Application

      • PRS 2.1.1

        This chapter applies to a Stabilisation ManagerG and to any Stabilisation AgentsG appointed by him.


        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]

    • PRS 2.2 Permitted Price Stabilisation

      • PRS 2.2.1

        (1) A Stabilisation ManagerG and, if applicable, his Stabilisation AgentsG may in respect of Eligible SecuritiesG :
        (a) purchase, or agree to purchase, such Eligible SecuritiesG ; or
        (b) offer or attempt to do anything in (a) with a view to stabilising the Market PriceG of such Eligible SecuritiesG .
        (2) A Stabilisation ManagerG and, if applicable, his Stabilisation AgentsG must not, when engaging in an activity described in (1), in respect of SharesG , CertificatesG over SharesG , WarrantsG over SharesG , and UnitsG that are shares representing the rights or interests of UnitholdersG in a FundG , conduct such activity at a price higher than the Offer PriceG .

        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
        [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]
        [Amended] DFSA RM213/2018 (Made 22nd February 2018). [VER7/04-18]

        • PRS 2.2.1 Guidance

          Pricing limits do not extend to DebenturesG hence RulesG PRS 2.2.1(2) do not apply with respect to DebenturesG . Pricing for DebenturesG is subject instead to the requirement in PRS 2.2.1(1) that the stablising action is taken to support the Market PriceG .


          Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
          [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.2

        A Stabilisation ManagerG and his Stabilisation AgentsG may, in respect of Eligible SecuritiesG :

        (a) make allotments of a greater number of the Eligible SecuritiesG than were offered (“over-allotment”);
        (b) sell or agree to sell the Eligible SecuritiesG in order to establish a short position in them;
        (c) buy or agree to buy the Eligible SecuritiesG in order to close out or liquidate any position that has been established by Price StabilisationG under (a) or (b);
        (d) sell or agree to sell the Eligible SecuritiesG in order to close out or liquidate any position that has been established by Price StabilisationG under (a) or (b); or
        (e) offer or attempt to do anything permitted by (a), (b), (c), and (d).

        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
        [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.3

        Any over-allotment permitted by PRS Rule 2.2.2(a) must meet the following criteria:

        (a) Eligible SecuritiesG may be over-allotted only during the OfferG period and at the Offer PriceG ;
        (b) the over-allotment option may be exercised by the beneficiaries of such an option only where Eligible SecuritiesG have been over-allotted;
        (c) the over-allotment option may not amount to more than 15% of the original OfferG ;
        (d) the exercise period of the over-allotment option must be the same as the Stabilisation WindowG ; and
        (e) the exercise of the over-allotment option must be disclosed to the market promptly, together with all appropriate details, including in particular the date of exercise and the number and nature of Eligible SecuritiesG involved.

        [Added] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.4

        For the purposes of PRS Rule 2.2.2, an 'over-allotment option' means an option granted by the IssuerG in favour of the Stabilisation ManagerG and/or his Stabilisation AgentsG involved in the OfferG for the purpose of covering over-allotments, under the terms of which such Stabilisation ManagerG or his Stabilisation AgentsG may purchase up to a certain amount of Eligible SecuritiesG at the Offer PriceG during the Stabilisation WindowG .


        [Added] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

        • PRS 2.2.4 Guidance

          The Stabilisation ManagerG may also often be the lead manager in respect of the same offer and therefore can over-allot Eligible SecuritiesG in the initial allocation and then facilitate the stabilisation by purchasing Eligible SecuritiesG during the Stabilisation WindowG . A Stabilisation ManagerG and his Stabilisation AgentsG may also sell short on the market to facilitate stabilisation or in order to close out or liquidate positions established by Price StabilisationG .

          [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

    • PRS 2.3 [Deleted]

      • PRS 2.3.1 [Deleted]

        [Deleted] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.3.2 [Deleted]

        [Deleted] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]