Clearing and Settlement
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What is the Investor Number (IN) and how is it used?
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The Investor Number (IN) is a unique number given to you as an investor. It identifies your account at the Clearing and Depository System (CDS), which holds all investor shares. The IN will be used to transfer shares to and from your account each time you buy or sell shares. When you open an account with a broker you will have to give your IN so that future transactions in your account can automatically be settled immediately after the trade is done.
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How long does it take to get an IN from the Clearing and Depository Department “CDS” in Dubai Financial Market?
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Investors can receive an IN by the next working day after the application is given to the Investor Services Desk.
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Who is a “present investor”?
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A present investor is someone who already owns shares of a DFM listed company.
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Who is a “new investor”?
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A new investor is someone who does not own any shares of a DFM listed company.
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What should I do in case my IN is lost?
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In case you lost your IN, you will have to put in a request to the Investor Services desk at the DFM to give you the same IN again.
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What is an account statement?
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An account statement shows the details of the transactions in your account over a specific time period, as well as your shareholdings at the statement date.
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How can I get an account statement?
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You can put in your request for an account statement to the Investor Services desk at the DFM.
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Is it possible for me to keep my shares in the CDS in case I don’t want to trade?
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You can keep your shares in the CDS if you don’t want to trade by filling a “Transfer of Shares” form, which allows you to transfer your shareholdings from your account with your broker to your account with the CDS. The form is available at the Investor Services Desk at the DFM.
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In case of buying (selling), when are the shares transferred to (from) the investor’s account?
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The shares are transferred to (from) the investor’s account immediately after the trade is executed.
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How can the investor transfer his shares from his account with the CDS to his account with the broker to begin trading?
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After opening an account with a broker, you may ask your broker to transfer some or all of your shares in the CDS to your new account with the broker.
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Where is the transfer of shares as a result of inheritance handled?
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The registrar of the concerned joint-stock company is responsible for this type of transfer. Once the transfer is completed, the registrar is responsible for updating the share ownership record at the CDS.
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How do I receive (pay) my money in case I sell (buy) shares?
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Normal DFM transactions settle on a T+2 basis i.e. two days after the trade date. On this day, your broker will receive (make) payment from (to) the Clearing House for sold (bought) shares and (credit) your account with the broker for the net sale amount. In case of buying shares, you will need to pay your broker according to the agreement between you and him.
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Trading
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What is the difference between trading before the opening of the Dubai Financial Market (DFM) and after?
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Before the opening of the DFM, trading in UAE stocks was unregulated. The lack of a formal marketplace meant that trading volumes were low and investors were not able to buy and sell easily. It also meant that demand and supply were not always properly met causing stock prices to be over/under valued. The existence of the DFM provides a regulated environment, which ensures that stock trading will be more efficient and transparent and investor’s interests will be better protected.
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Can I trade outside the DFM?
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The shares of companies that are listed at the DFM can only be traded at the DFM.
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Are there signboards showing where the brokers are located in the market?
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All accredited brokers have offices at the DFM and these have signboards identifying them. The brokers have also identification cards identifying them.
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I want to trade the shares that I already hold, What should I do?
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You will have to deposit your share certificates with the registrar of the company you wish to trade. You will then be issued an Investor Number (IN) which will identify your holdings in the Central Depository System (CDS). You will then need to open an account with a broker at the DFM. After that your shares can be transferred at your request to your account with the broker. You can then start trading by giving buy and sell orders to your broker.
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I want to trade, but I don’t hold any shares. What should I do?
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You must visit the Investor Services desk in the DFM to collect the forms and submit the required documents. You will need then to open an account with a broker. Your broker will help you obtain an IN from the CDS. You can then place your buy and sell orders with the broker.
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In case I hold a specific number of shares, is it possible to put these up for sale with two brokers in order to speed up the selling operation?
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You can have accounts with more than one broker. However, before you can trade, your shares will have to be transferred to your account with one broker. Therefore, it is not possible to place an order for the same shares with more than one broker. You can break up your holding and transfer part of your holdings to more than one broker.
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Is it necessary for me to come to Dubai Financial Market to give buy and sell orders? What is the alternative?
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It is not necessary to come to the DFM to give orders. You can arrange with your broker to give orders by phone, fax or e-mail.
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What if I want to change my broker?
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You can change your broker any time you like. You have to open an account with a new broker to be able to transfer your shares from the old broker. Alternatively, you can transfer your shares directly to your account in the CDS and then transfer them to a new broker.
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What is the trading hours at the DFM?
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Trading hours are from 10:00 AM to 2:00 PM. These hours are effective Sundays to Thursdays, except UAE public holidays.
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Is it possible for a minor to own shares and trade at Dubai financial market, and how?
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Minors can own shares and trade at the DFM with the existence of a guardian who will give instructions on the minor’s behalf. In addition, the guardian will also be expected to have an IN and an account at the CDS.
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Can I trade in the Dubai Financial Market without a broker?
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It is not possible to trade at the DFM without a broker. Only accredited brokers are authorised to buy or sell shares on behalf of investors.
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After shifting the shares to my account with the broker, can the broker trade for me in Dubai Financial Market?
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After the shares have been transferred to your account with the broker, you can give orders to the broker to trade in your shares at the DFM.
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What is the maximum number of deals that can be done during one day?
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There is no limit on the maximum number of deals that can be done during one day.
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What are the key facts about X-Stream trading engin
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1- Prices displayed during Pre-opening session refer to actual Bid and Ask prices rather than theoretical average prices.
2- The registered closing price represents the last executed transaction price.
3- X-Stream enables DFM to introduce new financial instruments such as Exchange traded funds ( ETF’s).
4- X-Stream enables DFM to execute up to 250,000 trades per session.
5- X-Stream is highly efficient and more flexible in order execution functionalities.
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General Questions
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What is Dubai Financial Market, (DFM)?
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DFM is a stock exchange that creates fair, transparent and efficient marketplace that serves the interest of the national economy. It provides a market for investors to buy and sell the stocks of publicly held companies in the UAE. Public Joint Stock Companies will be listed at the DFM, and investors will be able to trade in the shares of these companies through accredited brokers.
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Where should I go in case I have a disagreement with my broker?
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In case of a disagreement you can submit your complaint to Investor Services & Complaint Unit at the DFM, which will investigate your complaint and inform you about the outcome.
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Is it possible for me to open several accounts with different brokers?
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It is possible to have several accounts (with different account numbers) with more than one broker.
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Is there any information booklets about Dubai Financial Market and its procedures?
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"Investor Guide" is an integral brochure about DFM, it can be obtained from the Investor Services Desk located at DFM. The DFM is also holding regular seminars and training courses for investors.
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What should I do to obtain more information about the DFM?
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Details can be obtained from the Investors Services Desk at the DFM or by calling the DFM directly at +971-4-3128000
You can also send us an email to the following address: helpdesk@dfm.ae
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