UAE regulator says to tighten stock market supervision after Arabtec
DUBAI, July 7
DUBAI, July 7 (Reuters) - The financial market regulator of the United Arab Emirates said on Monday it would tighten supervision of the stock exchanges, after wild trading in Dubai-listed construction firm Arabtec helped to trigger a market crash.
Regulations on bank lending against shares will be reviewed and amended if needed, the Securities and Commodities Authority said in a statement after its chief executive met with heads of the central bank, the economy ministry and the Dubai and Abu Dhabi stock exchanges.
The SCA said it would also set up a technical committee with the central bank and the exchanges to ensure the soundness and integrity of share trading, and to prevent any manipulation of stock prices.
The statements of corporate CEOs and securities analysts will be monitored to make sure they're truthful, while the committee will review sharp market movements and submit recommendations, the SCA added. (Reporting by Andrew Torchia; Editing by Olzhas Auyezov)