Source: http://dfsa.complinet.com/en/display/display_viewall.html?rbid=1547&element_id=15937
Timestamp: 2019-03-20 09:03:43
Document Index: 327564211

Matched Legal Cases: ['art 2', 'art 2', 'art 8', 'art.\n49', 'art 2', 'art 3', 'art 8']

Location: Dubai Financial Services Authority (DFSA) > Laws > Markets Law
DIFC Law No. 1 of 2012
which was enacted and came into force on 5 July 2012
DIFC Law No. 2 of 2013,
on 5 January 2014; and
(2) Except where otherwise provided in this Law or the RulesG , anything done or omitted to be done pursuant to or for the purposes of the Previous Law is deemed to be done or omitted to be done pursuant to or for the purposes of this Law.
(5) The DFSAG may, by RulesG , prescribe any transitional or saving provisions as appear to the DFSAG necessary so as to give effect to, or to facilitate, the transition from to this Law.
10. Application of this Part to Collective Investment Funds
(1) The provisions in Part 2 of this Law and the Rules made for the purpose of that Part shall not apply to a person in relation to making an Offer of a Unit as defined in Article 19 of the Collective Investment Law 2010.
(2) The provisions in Part 2 of this Law and the Rules made for the purpose of that Part shall apply to a person who has or intends to have Units admitted to trading on an Authorised Market Institution in the manner and circumstances specified in this Law and prescribed in the Rules.
20. Prohibition against misleading and deceptive statements or omissions
(1) A person shall not make a Prospectus Offer if there is:
(i) the Prospectus;
(ii) any application form that is attached to or accompanies the Prospectus; or
(iii) any other communication that relates to the Prospectus Offer, or the application form;
(b) any material omission from the Prospectus, application form or any other document as required by this Law or the Rules; or
(c) a significant new matter or a significant change in circumstances that requires a Supplementary to be issued.
(2) A person does not contravene the prohibition in Article 20(1) if that person can prove the circumstances or matters specified in Articles 21 or and 22.
21. Defence of reasonable inquiries and reasonable belief
A person does not commit a contravention of Article 20(1), if that person proves that he:
(b) after making such inquiries, believed on reasonable grounds that the Prospectus was not misleading or deceptive.
22. Defence of reasonable reliance on information given by another person
(1) A person does not commit a contravention of Articles 20(1) if the person merely proves that he placed reasonable reliance on information given to him by:
(b) if the person is a natural person, someone other than an employee or agent of the natural person.
(2) For the purposes of this Part, a person is not the agent of a person merely because he performs a particular professional or advisory function for the person.
23. Statements about future matters
(1) A person is taken to make a misleading or deceptive statement about a future matter whether by himself or through his agent, if he, at the time of making the statement or causing the statement to be made, did not have reasonable grounds for making the statement or causing the statement to be made.
(2) The onus for proving that reasonable grounds existed for the purposes of Article 23(1) is on the person who made the statement or caused the statement to be made.
(3) A person referred to in Article 23(2) may rely on the circumstances referred to in Article 21 or 22 in order to prove that he had reasonable grounds for making the statement relating to the future matter.
24. Civil compensation
(1) Any person prescribed in Rules made by the DFSA as being liable for a Prospectus is liable to pay compensation to another person who has acquired Securities to which the Prospectus relates and who has suffered loss or damage arising from any untrue or misleading statement in the Prospectus or the omission from it of any material matter required to have been included in the Prospectus under the Law or Rules.
(2) The DFSA may make Rules prescribing circumstances in which a person who would otherwise be liable under Article 24(1) will not be so liable.
25. Stop orders
(1) If the DFSA is satisfied that an Offer of Securities to the Public would contravene or has contravened this Law or the Rules made for the purposes of this Law or it is in the interest of the DIFC, the DFSA may issue a stop order directing that no offer, issue, sale or transfer of the Securities be made for such a period of time as it thinks appropriate.
(2) The procedures in Schedule 3 to the Regulatory Law 2004 apply to a decision of the DFSA under this Article.
(3) If the DFSA decides to exercise its power under this Article, the offeror may refer the matter to the FMT for review.
Neither an Authorised Market Institution nor any director, officer, employee or agent of an Authorised Market Institution may be held liable for anything done or omitted to be done in the performance or discharge or purported performance or discharge of their respective duties and regulatory functions if the act or omission is shown to have been committed or omitted in good faith.
(1) The DFSA may require an Authorised Market Institution to have rules which set out procedures dealing with circumstances where a member is unable to meet its obligations in respect of contracts ("default rules") as a condition of its Licence.
(2) The DFSA may, by Rules, prescribe provisions which shall be adopted as part of an Authorised Market Institution's default rules.
(b) an applicant for a Licence to operate an Authorised Market Institution.
(2) The DFSA may grant an application for an endorsement if it is satisfied that the Authorised Market Institution or applicant (as the case may be) has listing rules that meet the requirements in Article 32 and complies with any other relevant requirements that are imposed by this Law or the Rules.
(3) The DFSA may refuse to grant an endorsement if it is not satisfied that the requirements referred to in Article 30(2) are met.
(4) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSA under this Article to refuse to grant an endorsement..
(5) If the DFSA decides to exercise its power under this Article to refuse to grant an endorsement, the Authorised Market Institution or applicant (as the case may be) may refer the matter to the FMT for review.
(1) The listing rules of an Authorised Market Institution shall contain such provisions as are prescribed in the Rules.
(2) Subject to Article 32(3), the DFSA may direct an Authorised Market Institution to:
(3) The DFSA may only direct an Authorised Market Institution in accordance with Article 32(2) if it has first requested the Authorised Market Institution to make or amend specified listing rules and the Authorised Market Institution has failed to comply with that requirement within the period specified by the DFSA in its request.
(4) The procedures in Schedule 3 to the Regulatory Law 2004 apply to a decision of the DFSA under Article 32 (2).
(5) If the DFSA decides to exercise its power under Article 32(2), the Authorised Market Institution may refer the matter to the FMT for review.
(6) Where the DFSA maintains an Official List of Securities, it shall, by Rules, prescribe the relevant listing rules. Such listing rules shall include requirements relating to:
(a) procedures for admission of Securities to its Official List of Securities including;
(i) requirements to be met before Securities may be granted admission to an Official List of Securities; and
(ii) agreements in connection with admitting Securities to an Official List of Securities;
(b) enforcement of the agreements referred to in Article 32(6)(a)(ii);
(c) procedures for suspension and delisting of Securities from an Official List of Securities;
(d) the imposition on any person of obligations to observe specific standards of conduct or to perform, or refrain from performing, specified acts, reasonably imposed in connection with the admission of Securities to an Official List of Securities or continued admission of Securities to an Official List of Securities;
(e) penalties or sanctions which may be imposed by the DFSA for a breach of the listing rules;
(f) procedures or conditions which may be imposed, or circumstances which are required to exist, in relation to matters which are provided for in the listing rules;
(g) actual or potential conflicts of interest that have arisen or might arise when a person seeks to have Securities admitted to an Official List of Securities; and
(h) such other matters as are necessary or desirable for the proper operation of the listing rule process and the market.
(1) A Reporting Entity shall have a corporate governance framework which is adequate to promote prudent and sound management of the Reporting Entity in the long-term interest of the Reporting Entity and its shareholders.
(2) For the purposes of the requirement in Article 39(1), the DFSA shall, by Rules, prescribe:
(a) corporate governance principles and standards that apply to a Reporting Entity, including any requirements applicable to its board of Directors and individual members, controllers, employees or any other person as appropriate;
(b) requirements relating to fair treatment of shareholders; and
(c) provisions to address conflicts of interests.
(3) The DFSA may, by Rules, prescribe any circumstances in which such requirements do not apply to certain Reporting Entities.
44. Annual financial report
A Reporting Entity shall prepare and file with the DFSA an annual financial report in accordance with the requirements prescribed in the Rules.
45. Interim financial report
(1) A Reporting Entity shall, subject to Article 45(2), prepare and file with the DFSA:
(a) a semi-annual financial report ; and
(b) any other financial statements required by the DFSA.
(2) The DFSA may, by Rules, prescribe the circumstances in which a Reporting Entity:
(a) is not required to file a semi-annual financial report; or
(b) is required to file any other financial statements pursuant to Article 45(1)(b).
46. Auditor's report
(1) Each annual financial report referred to in Article 44 shall be accompanied by a report of the auditor of the Reporting Entity in accordance with the requirements prescribed in the Rules.
(2) The report produced in accordance with Article 46(1) shall state whether in the auditor's opinion the financial statements required by Article 44 represent a true and fair view of the financial position of the Reporting Entity.
47. Supply of financial statements
Upon a request from a holder of its Securities, a Reporting Entity shall, within 14 days of the request, make a copy of the financial report filed under Article 44 or 45 available to the holder.
48. Public Listed Companies
A Reporting Entity which is a Public Listed Company shall have a Registered Auditor appointed in accordance with Part 8 of the Regulatory Law 2004 and any Rules made for the purposes of that Part.
49. Appointment of Sponsors or Compliance Advisers
(1) The DFSA may require that a Reporting Entity appoint a sponsor, compliance adviser or other expert adviser on such terms and conditions as it considers appropriate.
(2) The DFSA may, by Rules, prescribe:
(a) the circumstances in which a Reporting Entity is required to appoint a sponsor, compliance adviser or other expert adviser;
(b) the requirements applicable to the Reporting Entity and a person appointed as a sponsor, compliance adviser or other expert adviser; and
(c) any other matter necessary to give effect to such appointments.
(3) The procedures in Schedule 3 to the Regulatory Law 2004 apply to a decision of the DFSA under Article 49(1).
(4) If the DFSA decides to exercise its power under Article 49(1), the Reporting Entity may refer the matter to the FMT for review.
50. DFSA powers
(1) The DFSA may, if it is satisfied that it is in the interest of the DIFC to do so:
(a) direct a Reporting Entity to disclose specified information to the market or take such other steps as the DFSA considers appropriate; or
(b) impose on a Reporting Entity any additional continuing obligations,
on such terms and conditions as determined by the DFSA.
(3) If the DFSA decides to exercise its power under this Article, the Reporting Entity may refer the matter to the FMT for review.
51. Purpose of this Part
(a) ensure that where a Takeover takes place, it does so in an efficient, competitive, fair and informed market;
52. Takeover Rules
53. Takeover Principles
68. Orders in the interests of the DIFC
(1) The Court, on the application of the DFSA, may make one or more of the following orders in relation to a person, irrespective of whether a contravention of this Law or the Rules made for the purposes of this Law has occurred, if it is satisfied that it is in the interest of the DIFC to make such an order:
(a) an order restricting any conduct on such conditions or terms as the Court thinks fit;
(c) an order that any exemptions contained in the Law or the Rules do not apply permanently or for such period as is specified in the order;
(e) an order in relation to activities relating to a Takeover Offer within the DIFC;
(g) an order that a person resign one or more positions that the person holds as a director or officer of a company;
(h) an order that a person is prohibited from becoming or acting as a director or officer of any company;
(i) an order that a person is prohibited from making offers of Securities in or from the DIFC;
(j) an order that a person is prohibited from being involved in Reporting Entities, Listed Funds or Securities within the DIFC;
(k) an order requiring a person to disgorge to the DFSA any amounts obtained as a result of the non-compliance with the Law or the Rules;
(l) an order that a release, report, Prospectus, return, financial statement or any other document described in the order:
(ii) not be provided by a person described in the order; or
(iii) be amended by a person to the extent that amendment is practicable;
(m) any order that the Court thinks fit, in order to maintain the integrity of the DIFC and ensure an efficient, honest, fair and transparent market; or
(n) an order that a person must comply with a condition of a written notice referred to in Article 9(2) in a specified way.
(2) The Court, on the application of the DFSA, may make interim and ex parte orders specified in Article 68(1) (a), (b), (c), (d), (e), (f), (l) and (m).
(3) An order under Article 68(1) and (2) may be subject to such terms and conditions as the Court may impose.
70. Jurisdiction of the FMT
(1) The FMT has jurisdiction to hear and determine any regulatory proceedings in relation to:
(a) an issue arising out of the supervision of an Authorised Market Institution other than a direction under Article 26(2);
(b) an issue arising out of an offer of Securities arising under this Law;
(2) At the conclusion of such proceedings, the FMT may make a finding or declaration of unacceptable circumstances or a contravention of the Law or Rules, and may make one or more of the following orders, in addition to any orders it may make under Article 30 of the Regulatory Law 2004:
(a) an order requiring a person to comply with this Law or the Rules;
(b) an order in relation to the control or acquisition of Investments in or relating to a Reporting Entity;
(c) an order in relation to the rights of shareholders or minority shareholders in a Reporting Entity; or
(d) any consequential orders as the FMT sees fit following a finding or the making of a declaration.
(1) In this Law, a reference to:
(d) a day means, except where otherwise stated, a calendar day. If an obligation falls on a calendar day which is either a Friday or Saturday or an official StateG holiday in the DIFCG , the obligation shall take place on the next calendar day which is a business day;
(f) the singular includes the plural; and
(g) the masculine gender includes the feminine.
(2) The headings in this Law shall not affect its interpretation.
References to legislation and GuidanceG in this Law shall be construed in accordance with the following provisions:
(a) Federal Law is law made by the federal government of the StateG ;
(b) Dubai LawG is law made by the Ruler, as applicable in the Emirate of Dubai;
(c) DIFCG Law is law made by the Ruler (including, by way of example, this Law), as applicable in the DIFCG ;
(d) this Law is The Markets Law 2012 made by the Ruler;
(e) the Rules are legislation made by the DFSAG for the purpose of this Law and are binding in nature;
(f) GuidanceG is indicative and non-binding and may comprise (i) guidance made and issued by the Chief ExecutiveG as notations to the Rules; and (ii) any standard or code of practice issued by the DFSAG which has not been incorporated into the Rules; and
(g) references to "legislation administered by the DFSAG " are references to DIFCG Law and Rules conferring functions and powers on the DFSAG .
Court The DIFCG Court as established under Dubai Law.
DFSA Board of Directors the governing body of the DFSAG established under Chapter 2 of Part 2 of the Regulatory Law 2004.
DIFC Law has the meaning given in Article 2(c) of Schedule 1 to the Regulatory Law 2004.
Exempt Offer has the meaning prescribed in the Rules made under this Law.
Exempt Offeror a person specified in Article 13(2) of this Law and any person prescribed in the Rules made for the purposes of that Article.
Law the Markets Law 2012.
Licence a licence granted by the DFSAG under Chapter 2 of Part 3 of the Regulatory Law 2004.
Official List of Securities a list of Securities maintained by an Authorised Market InstitutionG or the DFSAG in accordance with this Law and the Rules made for the purposes of this Law.
Public Listed Company Has the meaning given in Article 3, Schedule 1 of the Regulatory Law 2004.
Reporting Entity Has the meaning given to that term in Article 38 of this Law.
Registered Auditor An auditor registered by the DFSAG in accordance with Part 8 of the Regulatory Law 2004.