Regulatory Alerts1987-06-15
Approval for IPO Participation by Banks
The United Arab Emirates Central Bank issued Circular No. 444 to consolidate and amend previous regulations regarding banks' participation in public share subscriptions. The directive mandates that all licensed banks obtain prior Central Bank approval before accepting subscriptions for new or existing companies, distinguishing between intermediary roles and mere fund transfer services. Furthermore, the circular imposes strict requirements on banks to verify compliance with local laws, disclose specific financial and procedural information to customers, and manage subscription funds in special accounts subject to reserve requirements.
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