SCA approves ETF regulations

The Emirates Securities and Commodities Authority (SCA) has approved the rules and regulations for introducing exchange traded funds (ETF) on the Abu Dhabi Securities Exchange, Emirates Business has learned.

The SCA's board, chaired by Sultan bin Saeed Al Mansouri, Minister of Economy, approved the regulations, under which both foreign and local ETFs will be traded on the ADX. Foreign companies can enter the ADX through ETFs formed both locally and in their own countries.

The funds would need to abide by all relevant laws in force in countries where they are set up as a basic condition of being accepted in the local market. They should especially comply with laws related to disclosure and shareholders' rights.

Also, the ADX shall inform the funds to be listed to abide by related laws or decisions issued later by the SCA.

The SCA said it had received the regulations from the ADX and its board has approved them.

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