|
Dubai Financial Market has been established as a public institution having its own independent body corporate. At its first stage, DFM is intended to operate as a secondary market for trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the Local Governments and public institutions in the country, investment units issued by local investment funds and any other financial instruments, local or foreign, which are approved by Emirates Securities & Commodities Authority (ESCA) and accepted by the Market. The ESCA is responsible for licensing and supervising all trading floors in UAE. The DFM constantly seeks to accomplish its objectives of creating a transparent, fair and efficient marketplace capable of protecting investments and savings of investors in general and small investors in particular.
In order to achieve these objectives the DFM seeks to provide the opportunity to invest in securities in a manner that better serves the national economy.
Creating liquidity in the marketplace through the people interaction of supply and demand based on fair and equitable trading practices between investors. DFM has been set up to unfair and improper practices. Codes of conduct have been established for brokers and other operators in the DFM with a view to enhance their efficiency and professional performance. DFM is equipped with state of the art systems and technology to provide maximum liquidity in securities trading through the interaction of supply and demand to determine the fair price of securities. In addition, the DFM protects the rights of the investors by building the foundation, which regulates the investors trading activities. The DFM has a fully integrated and automated system that also ensures speed and accuracy in the transfer of share ownership.
Undertaking of buying & selling transaction at Dubai Financial Market:
There are 3 ways for buying and selling of securities at DFM viz.,
(1) In person
(2) By telephone
(3) By fax
In Person:
A person or his official representative can visit his broker at DFM and fill in buy/sell order form for each deal and sign it.
By telephone:
The broker may be contacted
by telephone and place the orders. Telephones
at brokers offices are equipped with recording
devices, which can be referred to in case of
dispute with brokers.
By fax:
Order may be placed by sending a fax instructing the broker to buy/sell shares.
Once the order is received the broker will enter it into the trading system. Shares are transferred electronically from the seller's account with broker upon successful conclusion of a trade. The buyer is immediately able to sell the shares purchased, either in part or in full. The seller has no access to the shares after the trade is executed.
Payments
Payments between the broker and the buyer/seller are settled as per their mutual agreement. According to DFM rules and regulations, the seller is entailed to receive his funds two working days after conclusion of the trade.
Establishing Ownership of Securities: -
An investor can apply to the clearing house, either through the broker or through the DFM Investor Service Desk, for a proof of ownership of the shares by filling a "Shares Balance Form" . A shares balance report will be issued within one hour.
Trading System in DFM: -
DFM operates an automated screen-based trading system like most of world's major stock exchanges. Automated screen-based trading system offers a distinct advantage over traditional floor trading in terms of liquidity and transparency of prices.
|
