Corporate Finance and Listing Requirements Flashcards

What financial reporting standards does the SCA require for listed companies?

Answer: International Financial Reporting Standards (IFRS) are mandatory for all listed companies, with SCA-specific additional disclosure requirements

The SCA mandates IFRS for all listed companies' financial statements, supplemented by SCA-specific disclosure requirements covering segment reporting, related party transactions, and governance information.

What audit requirements does the SCA impose on listed companies?

Answer: Annual audit by SCA-approved external auditors, audit committee oversight, auditor rotation requirements, and independence standards

SCA requires annual external audit by SCA-approved audit firms, audit committee oversight of the audit process, auditor rotation (firm and partner), auditor independence standards, and timely filing of audited financial statements.

What is the SCA regulation on rights issues and capital increases?

Answer: SCA and shareholder approval required, existing shareholder pre-emption rights, prospectus requirements, pricing guidelines, and disclosure obligations

Rights issues and capital increases require SCA approval, shareholder general assembly authorization, existing shareholder pre-emption rights protection, prospectus filing, pricing guidelines, and comprehensive disclosure.

What delisting requirements and procedures does the SCA establish?

Answer: Formal application to SCA, shareholder approval, fair exit offer to minority shareholders, regulatory review period, and orderly market transition

Voluntary delisting requires SCA application, shareholder approval at a general assembly, a fair exit offer to minority shareholders, SCA review period, and an orderly transition process to protect remaining shareholders.

What SPACs (Special Purpose Acquisition Companies) regulations has the SCA developed?

Answer: SCA has developed a SPAC listing framework with requirements for sponsor qualifications, escrow of IPO proceeds, acquisition timeline, and shareholder redemption rights

The SCA has developed SPAC-specific regulations covering sponsor qualification and investment, IPO proceeds escrow requirements, target acquisition timelines, shareholder approval and redemption rights, and ongoing disclosure obligations.

What is the SCA's approach to dual listing of securities?

Answer: UAE-listed companies can seek secondary listings on international exchanges subject to SCA approval, compliance with both jurisdictions' regulations, and disclosure coordination

The SCA permits dual listing where UAE-listed companies can seek additional listings on international exchanges, requiring SCA approval, compliance with both regulatory frameworks, and coordinated disclosure obligations.