Regulatory Alerts2006-04-23
Added · Updated
Treasury Stocks Instructions No. 28/2006 Issued by the Central Bank of Jordan
The Central Bank of Jordan permits banks to purchase their own shares as treasury stocks up to 5% of paid-up capital, subject to prior written approval and specific financial conditions including two years of net profits and maintained capital adequacy ratios. Banks are prohibited from increasing capital or dealing with treasury stocks for a period of six months following the last capital increase, and transactions by board members, related parties, or employee provident funds are strictly forbidden. These instructions repeal Instructions No. 25/2006 and became effective on 23/4/2006.
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