FRA sets rules to facilitate treasury shares trading

Updated 10/8/2023 7:39:00 AM
FRA sets rules to facilitate treasury shares trading

Arab Finance: The Financial Regulatory Authority (FRA) has developed rules on facilitating the companies’ trading of treasury shares, a statement showed.

The new rules allow firms to trade on treasury shares via the open market instead of the special operations market (OPR).

Additionally, the period between notification and execution has been cancelled.

This is on condition that the period of holding onto the local purchased treasury shares will be at least three months and a maximum of one year as of execution.

The FRA’s decision also stipulates that tradable treasury shares shall not exceed 10% of the company’s total listed shares, and that the company’s board is solely authorized to issue decisions on purchasing or selling treasury shares.

Moreover, the execution of treasury shares transactions shall not exceed a one-month period as of notification, and companies that did not trade 50% of the required shares within this period are not allowed to submit a purchase order before a three-month period as of the previous execution.

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