Regulatory Alerts2009-01-01
Circular No. (1) of 2009 Regarding Deposit and Trading Rules for Reward and Incentive Shares
The Financial Regulatory Authority issued Circular No. (1) of 2009 to establish mandatory deposit and trading rules for shares allocated to employee reward and incentive programs. The directive requires issuing companies to immediately notify the Central Depository and Securities Registration Company upon acquiring or allocating such shares, which must be frozen and segregated under a dedicated system code rather than treated as treasury stock. It further mandates specific handling procedures for cash dividends, capital increase subscriptions, and any disposal of these shares, strictly limiting actions to those explicitly approved by the Authority and requiring full compliance within one month.
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