Regulatory Alerts1999-12-24 | 7493Financial Operations and Activities in Capital Markets
The Central Bank of Lebanon issued Basic Decision No. 7493 to regulate financial operations and capital market activities for banks and financial institutions. The decision prohibits proprietary trading in derivative instruments except for hedging, restricts participation in investment entities and composite financial instruments to 7% of own funds, and mandates specialized units for managing structured products. It further establishes supervisory frameworks with the Financial Markets Authority, defines solvency and capital reserve requirements, and sets clear conditions for licensing, risk management, and accounting treatment of surplus from sovereign instrument transactions.
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