Khalifa bin Zayed issues a new law

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Today, Tuesday, His Highness Sheikh Khalifa bin Zayed Al Nahyan, as President of the Emirate of Abu Dhabi, issued a law to amend the legal form of the Abu Dhabi Stock Exchange to become the Abu Dhabi Securities Market Company, a “public joint stock company”, to replace the Abu Dhabi Securities Exchange Wholly owned by the holding company.

The law specified the authorized capital of the company at 500 million dirhams, divided into 500 million shares, with a nominal value of one dirham per share. The law also specified the issued capital of the company at 100 million dirhams, divided into 100 million shares, and the nominal value of the share is one dirham .. All shares of the company upon its establishment are wholly owned by the holding company.

The law authorizes shareholders to sell or transfer some or all of their shares to any other entity or shareholder. They may also offer the company’s shares for public or private subscription, according to what is specified by the company’s articles of association.

The law defines the company’s competences in managing and organizing the market, including listing and trading financial papers and instruments, conducting deposits, clearing, settlement and central clearing operations, in addition to providing an appropriate environment for the interaction of supply and demand forces in the market in accordance with the principles of justice, transparency and efficiency, and what this entails in organizing, implementing, supervising and controlling And inspection.

The Abu Dhabi Stock Exchange Company is also concerned with providing, preparing, and managing one or more platforms for trading securities and financial instruments, whether through a trading session or outside it or any other mechanism developed, and providing related services such as services provided to brokers, market makers, liquidity providers and other updated services.

The company will work in accordance with the law to provide, prepare and manage one or more “or market” platforms for listing securities and financial instruments, and to provide services to issuing bodies such as underwriting services, support services for underwriting, record-keeping services, management of general assemblies, and the distribution of cash dividends and other new services.

The law also authorizes the company to perform the filing, clearing and settlement activities of securities and financial instruments, and to provide related services including investor services, custodial service, and the service of lending and borrowing securities and other services developed … while the company can also perform central clearing activities “the central counterparty” and provide Related services including managing and investing cash collateral, securities guarantees and other services.

The law also specifies the company to issue and list securities and financial instruments and derivatives thereof, in addition to organizing, implementing, supervising, controlling and inspecting institutions and companies operating in the market such as brokers, custodians, clearing members, and others, and undertaking any necessary procedures for that including issuing licenses and registrations and identifying and collecting in return for services that It provides and other actions.

The company will monitor the trading of securities and financial instruments in accordance with the legislation in force, in addition to providing services for resolving disputes arising between the parties in relation to operations on securities and financial instruments.

According to the law, the Abu Dhabi Securities Market Company has the right to establish, acquire, enter into a partnership or own any company, institution or fund whose purpose is to perform any financial market activity or any other commercial activity supporting the work of the market in accordance with the rules and procedures approved by shareholders.

The company also has the right to carry out investment activities in all its forms and to manage the financial surpluses it owns inside and outside the country, in addition to providing financial services and products related to the operational and commercial activities of the market.

The company’s competencies also include managing the cash monetary amounts resulting from the process of distributing cash dividends, depositing them and owning their returns according to the regulations or according to the contract with the parties, in addition to managing the cash guarantees and securities guarantees belonging to the members of the clearing and others and investing them and owning their returns according to the regulations or according to the contract with the parties, or any Other powers assigned to it by the Executive Council or by a decision of the shareholders in the company.

The company’s financial resources consist of the commissions imposed on trading in accordance with the applicable legislation, in exchange for the services it provides, fines imposed on violators in accordance with the applicable legislation, or any other resources approved by the Board of Directors.





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