"The sanctions include financial penalties against Damas; Tawhid, Tawfique and Tamjid Abdullah; and voluntary bans, for periods up to 10 years, on the Abdullah brothers from acting as directors of Damas or any company in the Dubai International Financial Centre," the regulator said in a statement on Sunday.

The announcement follows an investigation by the DFSA into "unauthorized transactions" that were announced to the market by Damas on Oct. 15, 2009.

Announcing the actions against Damas and its directors, the chief executive of the DFSA, Paul Koster, said, "Maintaining international governance standards and internal systems and controls as well as ensuring investor confidence is fundamental to the integrity of the market in the DIFC."

The investigation found that the amount owing by the Abdullah Brothers to Damas comprised approximately 365 million dirhams plus the value of approximately 1,940.25 kg of gold, the price of which is to be fixed on a date agreed by Damas and the Abdullah brothers. Damas, a Nasdaq Dubai-listed jewelry group, operates more than 450 jewelry stores, mostly in the Middle East.