Entire Section

  • PRS 2 PRS 2 Price Stabilisation

    • PRS 2.1 PRS 2.1 Application

      • PRS 2.1.1

        This chapter applies to a Stabilisation Manager and to any Stabilisation Agents appointed by him.


        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]

    • PRS 2.2 PRS 2.2 Permitted Price Stabilisation

      • PRS 2.2.1 PRS 2.2.1

        (1) A Stabilisation Manager and, if applicable, his Stabilisation Agents may in respect of Eligible Securities:
        (a) purchase, or agree to purchase, such Eligible Securities; or
        (b) offer or attempt to do anything in (a) with a view to stabilising the Market Price of such Eligible Securities.
        (2) A Stabilisation Manager and, if applicable, his Stabilisation Agents must not, when engaging in an activity described in (1), in respect of Shares, Certificates over Shares, Warrants over Shares, and Units that are shares representing the rights or interests of Unitholders in a Fund, conduct such activity at a price higher than the Offer Price.

        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
        [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]
        [Amended] DFSA RM213/2018 (Made 22nd February 2018). [VER7/04-18]

        • PRS 2.2.1 Guidance

          Pricing limits do not extend to Debentures hence Rules PRS 2.2.1(2) do not apply with respect to Debentures. Pricing for Debentures is subject instead to the requirement in PRS 2.2.1(1) that the stablising action is taken to support the Market Price.


          Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
          [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.2 PRS 2.2.2

        A Stabilisation Manager and his Stabilisation Agents may, in respect of Eligible Securities:

        (a) make allotments of a greater number of the Eligible Securities than were offered (“over-allotment”);
        (b) sell or agree to sell the Eligible Securities in order to establish a short position in them;
        (c) buy or agree to buy the Eligible Securities in order to close out or liquidate any position that has been established by Price Stabilisation under (a) or (b);
        (d) sell or agree to sell the Eligible Securities in order to close out or liquidate any position that has been established by Price Stabilisation under (a) or (b); or
        (e) offer or attempt to do anything permitted by (a), (b), (c), and (d).

        Derived from DFSA RM21/2005 (Made 1st August 2005). [VER1/08-05]
        [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.3

        Any over-allotment permitted by PRS Rule 2.2.2(a) must meet the following criteria:

        (a) Eligible Securities may be over-allotted only during the Offer period and at the Offer Price;
        (b) the over-allotment option may be exercised by the beneficiaries of such an option only where Eligible Securities have been over-allotted;
        (c) the over-allotment option may not amount to more than 15% of the original Offer;
        (d) the exercise period of the over-allotment option must be the same as the Stabilisation Window; and
        (e) the exercise of the over-allotment option must be disclosed to the market promptly, together with all appropriate details, including in particular the date of exercise and the number and nature of Eligible Securities involved.

        [Added] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.2.4 PRS 2.2.4

        For the purposes of PRS Rule 2.2.2, an 'over-allotment option' means an option granted by the Issuer in favour of the Stabilisation Manager and/or his Stabilisation Agents involved in the Offer for the purpose of covering over-allotments, under the terms of which such Stabilisation Manager or his Stabilisation Agents may purchase up to a certain amount of Eligible Securities at the Offer Price during the Stabilisation Window.


        [Added] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

        • PRS 2.2.4 Guidance

          The Stabilisation Manager may also often be the lead manager in respect of the same offer and therefore can over-allot Eligible Securities in the initial allocation and then facilitate the stabilisation by purchasing Eligible Securities during the Stabilisation Window. A Stabilisation Manager and his Stabilisation Agents may also sell short on the market to facilitate stabilisation or in order to close out or liquidate positions established by Price Stabilisation.

          [Amended] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

    • PRS 2.3 PRS 2.3 [Deleted]

      • PRS 2.3.1 [Deleted]

        [Deleted] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]

      • PRS 2.3.2 [Deleted]

        [Deleted] DFSA RM70/2010 (Made 11th July 2010). [VER3/07-10]