SCA Corporate Finance and Listing Requirements

Question 1

What are the SCA listing requirements for companies seeking to list on UAE exchanges?

Accepted Answer

Minimum capital, operating history, profitability track record, corporate governance compliance, free float requirements, and comprehensive disclosure

Answer

Any company can list without requirements

Answer

Only market capitalization matters

Answer

Listing requirements are set by the company

Question 2

What continuous disclosure obligations do listed companies have under SCA regulations?

Accepted Answer

Immediate disclosure of material information, quarterly and annual financial reporting, board/ownership changes, and any events that could affect share price

Answer

Only annual reports are required

Answer

Disclosure is only required during trading hours

Answer

Only positive news must be disclosed

Question 3

What are the SCA regulations on tender offers and takeovers?

Accepted Answer

Mandatory tender offer trigger thresholds, equal treatment of shareholders, minimum acceptance period, independent advisor appointment, and board disclosure requirements

Answer

No takeover regulations exist

Answer

Takeovers are prohibited

Answer

Only friendly takeovers are permitted

Question 4

What related party transaction rules does the SCA enforce?

Accepted Answer

Board approval (excluding interested directors), shareholder approval for material transactions, independent valuation, full disclosure, and fair dealing requirements

Answer

No rules on related party transactions

Answer

Only disclosure is required

Answer

Related party transactions are prohibited

Question 5

What dividend distribution regulations does the SCA establish?

Accepted Answer

Dividends must be paid from distributable profits, comply with SCA approval procedures, maintain minimum capital requirements, and follow shareholder-approved distribution policies

Answer

Companies can distribute any amount as dividends

Answer

Dividends are mandatory for all listed companies

Answer

No dividend regulations exist

Question 6

What is the SCA's role in regulating share buyback programs?

Accepted Answer

Companies must obtain SCA approval, disclose buyback intentions, comply with volume and price limits, and report executed buybacks within specified timeframes

Answer

Share buybacks are prohibited

Answer

No regulations exist for buybacks

Answer

Companies can buy back shares without restrictions