UAE market regulator issues new rules, penalties - Markets - ArabianBusiness.com:
"The UAE stock market regulator has introduced new margin lending rules and vowed to crack down on unlicensed lending, it said in a statement on its website.
Margin lending - borrowing with cash or share holdings as security, has been in high demand as investors sought to maximise gains from a UAE market surge, with Dubai and Abu Dhabi's bourses jumping 108 percent and 63.1 percent respectively last year.
Limits on such lending were introduced in 2008, but many brokers ignored these and faced few repercussions. Now, on the request of brokers, the Securities and Commodities Authority (SCA) has made changes to what firms can lend customers.
Previously, firms could lend each client 10 percent of the capital they set aside for margin lending, but they can now lend three times that amount. The new rules are to take immediate effect."
'via Blog this'
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