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  • 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]