Damas incident: A lesson for all
Taking an extreme step of its kind, the UAE market regulator, the Financial Service Authority of Dubai, has slapped fine and ban on the founders of Damas International Ltd for owning dictatorship with any company. The step is taken after revelation of a large number of anomalies in the transaction made by the largest jewelry retailer of the Gulf region.
The regulator also fined majority shareholders, Tawhid, Tawfiq and Tamjid Abdullah besides some others for violating the rules of the land for their personal interests. The regulator pulled three Abdullah brothers for withdrawing money from a publicly traded company, breaching the trust of the government and many shareholders.
The development is seen as a wake-up call for other companies and investors and reflects the intense need of setting benchmarks in the corporate governance and streamlining its operations. Experts believe that such activities can push investors away from the UAE market due to lack of transparency in the system.
Meanwhile, investors hailed the step taken by the Dubai Financial Services Authority (DFSA) and said that it would help to reinstate investor's confidence.
New Zealand News
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