On 8 September 2020, FRA amended executive regulations of capital market law.
- FRA issued Prime Minister’s decree No. 1760 of 2020, amending executive regulations of the capital market law No. 95 of 1992 re purchase offers for purpose of takeover/acquisition.
- Provided new acceptable forms of sukuk; flexibility for real estate investment funds.
- Removed certain concentration risk cap for private equity funds; covered acquisitions.
Real Estate Investment Funds
- Real estate funds may invest in any properties except those that are legally contested.
- Assets can now be evaluated by only one appraisal expert registered with the FRA.
- Amendments provided flexibility for property funds to implement their venture policies.
Private Equity Funds
- Private fund managers may diversify investments and provide financing for projects.
- As well as manage concentration risks in manner commensurate with the fund’s goal.
- Removed prohibition on investing more than 25% of fund’s net assets in one company.
Acquisitions, Non-Active Shares
- Clarified how to calculate price of active shares subject to acquisition purchase offer.
- Stipulated setting prices for buying non-active shares based on a fair value study.
- Investors now permitted ownership of above 75% of target firm's shares/voting rights.
- So long as the ownership resulted from a previous purchase offer, without the need to submit a compulsory purchase offer; FRA has the authority to reject a purchase offer.