CMA Surveys Views on the Draft Securities Law "Securitization" Backed by Assets
Within the framework of the role of the Securities and Commodities Authority (SCA) in regulating and developing the financial marketin the UAE, and in continuation of its approach to polling the opinion of its partners in the financial industry before issuing new regulations, the Authority published on its website the www.sca.gov.ae of a preliminary draft of the draft system of asset-backed securities "securitization", to seek the opinions of those interested, experts and stakeholders and receive their comments tobe taken into account when preparing the final version of the law.
Securitization is the first regulation of its kind in the UAE's local capital markets, and securitization is a process whereby individual or combined assets are sold and transferred to a Special Purpose Company (SPV) to issue asset-backed securities.
The CMA invited all parties concerned with the capital market in the UAE, including investors, brokers, financial analysts,researchers,media,interested parties and others, to review the draft resolution and express their opinions on it no later than January 20 of this year, through an e-mail Securitization@sca.ae.
The draft included 24 articles, including the scope of application, standards and requirements for assets subject to securitization treatment,real sale criteria,parties to the securitization process, definition of the special purpose company, its incorporation, articles of association, management,general provisions and dissolution,exceptions,the investment trustee and his assistant, disclosure requirements, application submission, provisions regulating Sukuk and debt securities, the proceeds of subscription, listing and trading, and other articles and provisions.
For a copy of the decision, please visit the following link: asset-backed-securities-project.aspx
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