The purpose of this chapter is to provide rules permitting, but also regulating, price support for offers of equities and bonds, including new issues such as initial public offers and offers of securities of the type and class already traded in the market. It prescribes the circumstances in which the stabilising manager and others acting for him are permitted to support the prices of the relevant securities offered for a limited period after the offer. This is to maintain an orderly initial market in the securities offered, and potentially therefore to facilitate new offers and reduce the costs to enterprises involved in the making of new offers of their securities. The stabilising manager and his agents are allowed to exert upward pressure on the price in the cash market, by all means permitted by the price stabilising rules, including by the purchase of relevant securities previously sold short. Under the rules in this chapter, there can be only one stabilising manager in respect of any particular offer.
The general effect of this chapter is to enable the stabilising manager of an offer of securities to enter into the market personally, or through specially appointed agents, to buy or agree to buy securities in order to support (though not to suppress) the market price of the relevant securities being offered. He will, however, be free to do this only if:
the stabilising period is still running;
the market had not been properly informed in accordance with MAR 2.3.2 G(1) and (2); or
proper records are obliged to be but have not been or are not being kept in accordance with MAR 2.3.2 R (3); or