Abu Dhabi-Mubasher: Securities and Commodities Authority (SCA) refused a request by Bank of Sharjah (BOS) to distribute the shares that the corporate lender earlier acquired as part of a debt-for-equity swap deal, as bonus, according to a bourse statement on Sunday.

The regulator cited the purpose of the swap deal did not fulfill regulatory requirements.

An earlier statement said that the bank closed a deal to take over 110 million shares held by an indebted client in return for reducing part of his debt.

The bank’s stock stabilised at AED 1.35 by 12:00pm UAE time.