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Banking

Fraudsters manipulate share price of Dubai Islamic Bank

The UAE's financial regulator, the Securities and Commodities Authority, announced on September 6 that the case of two individuals and a brokerage suspected of manipulating the stock price of Dubai Islamic Bank (DIB) had been referred to the judiciary.

The UAE's financial regulator, the Securities and Commodities Authority, announced on September 6 that the case of two individuals and a brokerage suspected of manipulating the stock price of Dubai Islamic Bank (DIB) had been referred to the judiciary. The regulator added that it would make a recommendation on punishment to the justice ministry, while the SCA's executive director, Abdullah Al Turaifi, announced that "the people who took part in the manipulation or took advantage of the manipulations in the market will be completely stopped from trading in the financial markets".

According to the SCA, initial investigations into the suspected fraud, which took place on 28 August, indicate that the rogue traders had carried out large transactions in an effort to influence the share price and make a quick profit. The two UAE suspects allegedly used a minor and a Palestinian national respectively to carry out the illegal transactions via the Al-Sharhan brokerage, which Turaifi said "knew directly and very well about the irregularities by these manipulators".

In response to the suspected share price manipulation, the Dubai Financial Market (DFM) on August 29 cancelled the previous day's trading of all DIB's shares, which amounted to an astounding 268.23

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