An obligor with a retail primary listing of Sukuk immediately notified the Authority when one of its board directors was replaced. Why was the obligor considered to be in breach of its continuing obligations?
A.
The obligor failed to give 14 days' notice
B.
The obligor failed to also notify the market
C.
The new director held a foreign passport
D.
The new director had less than 5 years' experience
Under the CISI UAE Financial Rules and Regulations governing Sukuk issuers with retail primary listings, obligors have continuing disclosure obligations designed to ensure transparency and maintain investor confidence. While immediate notification to the Authority is necessary, the obligor must also notify the market to keep all stakeholders informed promptly. Failure to inform the market simultaneously constitutes a breach, as investors rely on timely and complete information to make decisions. This dual-notification requirement is critical to ensure fairness and prevent information asymmetry. The nature of the new director’s passport or experience is not the determining factor; rather, it is the procedural omission of market notification that constitutes the breach.
[Reference: CISI UAE Financial Rules and Regulations — Continuing Obligations for Sukuk Issuers, Section 5.7.3 (2023)., ]
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