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SCA investigates suspected violations by listed public joint stock companies

The Securities and Commodities Authority (SCA) initiated an investigation into a number of suspected violations by some public joint stock companies listed on the UAE financial markets, most notably failure to present financial statements in a true and fair manner and failure to comply with the governance and institutional discipline standards.

Among the violations being investigated in response to requests and complaints by shareholders are those attributed to another listed company. They involve practices committed by a number of its board members that, according to the shareholders, inflicted damage to them and to the company.

Depending on what the investigations and inspections reveal, SCA will take the necessary legal proceedings in accordance with Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market, Federal Law No. (2) of 2015 concerning Commercial Companies, and the implementing decisions.    

As to licensed companies, SCA has concluded an investigation with a brokerage company and is considering to suspend its operations and to impose a number of financial penalties for proved violations including failure to segregate client accounts from the accounts belonging to the company and failure to comply with the international accounting standards. 

It is worth mentioning that SCA receives complaints and suggestions from investors and stakeholders via multiple channels, including its Contact Us page, the National Customer Relation Management Gateway, and the live chat feature offered on its website. 

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