Regulatory Alerts2022-02-14
Banks’ Acquisition of Own Shares Regulation
The Central Bank of the UAE issued this regulation to define regulatory obligations for banks acquiring or buying back their own shares under Article 93(3) of the Central Bank Law. Banks must obtain prior written approval from the Central Bank before acquiring own shares and are capped at holding no more than 10% of their paid-up share capital. Additionally, banks must immediately notify the Central Bank of any breaches and sell excess shares held due to debt settlement within two years.
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