The responsiblity of Clearing, Settlement and Depository Division starts after the Chairman and the Board of Directors approves the listing request.

The Division coordinates immediately with the company or their registrar to train their employees to use the electronic clearing system along with providing them with a user guide.

The Clearing, Settlement and Depository Division performs the following tasks:

1. Receive a copy of listing request and the company's share register on disk from the Market Development after the final approval from the Chairman and the Board of Directors.
2. Review the share book contents.
3. Coordinate with the company in case of uncompleted share register data.
4. Receive a letter from the company that identifies the company's symbol. A copy from the letter get forwarded to the Operation Department to set the symbol code.

 Custody Of The Shareholders Register Of The Private Shareholding Companies

Private shareholding companies are not listed companies in Dubai Financial Market, but Clearing, Settlement & Depository Division manages the register of the company whereas they later play the role of the official registrar of these companies after signing of an agreement in this regard. Clearing, Settlement & Depository Division renders all kind of services for private shareholding companies inclduing execution of transfers requests and provision of the requested shareholders register, reports....etc.

 Electronic Connection With AS400 For Listed Companies

1. Requesting officially the service and specifying the number of user names required and their authority levels.

 Change Of A Trading Symbol For A Listed Company

Requirements:     

1. The listed company should send an official letter and specify the details of change and the effective date.

 Corporate Actions

 Kinds of Corporate Procedures

Types of corporate actions: including but not limited to:

 Coordination With Listed Companies

1. The company will normally cease to trade its shares during the period when the general meeting coincides with the trading session in Dubai Financial Market.

• Date of holding the general meeting: The date of holding the meeting in which the board of directors of the company announces the profit and loss statements, any distribution of profits among shareholders, and any other action, as well as the date of closure of the shareholders register.
• Closure date of register: That when the register of company shareholders will be closed. No trading of company shares will be counted if it occurs on the day of closure of the register and on the working day preceding it. When the dividend payments are due.  This is because the approved                            financial settlement in the market is T+2. the register closing date must approved by the general meeting and it must be  at least four  working days  after the general meeting. 

 A - Distribution Of Cash Dividends

The company sends to Dubai Financial Market on the working day following the meeting, a letter containing the resolutions adopted by the general meeting and date of closure of register.

 B - Distribution Of Bonus Shares

The company sends to Dubai Financial Market on the working day following the meeting, a letter containing the resolutions adopted by the general meeting and date of closure of register.

 C - Distribution Of Cash Dividends And Bonus Shares Together

The company sends to Dubai Financial Market on the working day following the meeting, a letter containing the resolutions adopted by the general meeting and date of closure of register.

 D - Spliting Of Securities And Other Corporate Actions

• The company sends to Dubai Financial Market on the working day next to the day of meeting, the resolutions adopted by the general meeting and the proposed day of register closure.
• After obtaining the necessary approvals from the authorities conecerned, the company will send a letter to Dubai Financial Market of the actual closure of the register.
• On the register closing day, the Clearing, Settlement and Depository Division (CSD) will send to the company a copy of the company's amended register for checking and approval.
• After obtaining the company's written approval of the changes, not later than 08:00 AM on the trading day, the management will in coordination with the Information Technology Unit execute the effective action and resume trading in the company's securities. But if the approval in writing is received after eight in the morning, execution of action will be postponed to after the market's official trading hours.
• The management will prepare an updated shareholders' register and a statement of share balances of the company's shareholders and send it to the company of its registrar.
• The Market Developement Division will disclose these changes to the clients and investors.
• The Clearing, Settlement and Depository Division (CSD) will be comitted to maintain complete confidentiality in cases where the closing day is connected with an action which has not been announced yet.

• Resumption of trading the securities will be not more than one hour before trading or only after trading.
• Share splitting action is changeable as the case of each company requires.

  Procedures of Ownership Transfer From Certificates Into An Electronic Environment

 Issuing Consolidated Investor Number

•  If The Investor Is An Individual

 If the investor is an individual (citizen):

• The investor data entry form must be filled.
• The original share ownership certificates (optional).
• Copy of the allotment notice for recently listed companies.
• Copy of a valid passport.
• Copy of the family ID /Marsoom for nationals.
• Copy of the National ID.

If a Minor (below 21 years):

• The signature of the guardian (the Father) is necessary on the application.
• In the case of a guardian other than the Father, a true copy of guardianship order issued by the court shall be provided.

If the investor is an Individual (foreigner):

• The investor data entry form must be filled.
• The original stock ownership certificate (optional).
• Copy of the allotment notice for the recently listed companies.
• Copy of a Valid Passport.
• Copy of the National ID.
• Copy of Residential Visa.

If a Minor (below 21 years):

• The signature of the guardian (the Father) is necessary on the application.
• In the case of a guardian other than the Father, a true copy of guardianship order issued by the court shall be provided.

•  If the Investor is a Sole Proprietorship

•  If the Investor is a Company

• Fill the investor data entry form.
• Certificates of ownership of securities (optional).  
• Copy of the allotment notice for latest listed companies.     
   
• True copy of a valid Memorandum of Association, Trade License and Commercial Register.
• Authorized signatory letter issued by the company, duly authenticated.
• True copy of the authorized signatory valid Passport and National ID.
   

Companies and Institutions licensed outside the UAE must authenticate official documents: Trade License, Commercial Register and Memorandum of Association, by the UAE Ministry of Foreign Affairs or the UAE embassy in those countries.

•  If the Investor is a Fund

• True copy of a valid Memorandum of Association, Trade License and Commercial Register.
• Authorized signatory letter issued by the company, duly authenticated.
• True copy of the authorized signatory valid Passport and National ID.
• A duly authenticated license letter from the Central Bank must be provided for the funds in the UAE. For funds outside the UAE, the authenticated documents from the official authorities must be attached.

Funds licensed outside the UAE must authenticate official documents: Trade License, Commercial Register and Memorandum of Association, by the UAE Ministry of Foreign Affairs or the UAE embassy in those countries.

• A true copy of a duly authenticated and valid Power of Attorney must be provided with a copy of representative’s ID.
• A Power of Attorney issued from other countries must be authenticated by the official authorities and the UAE embassy in those countries.

•  If the Investor is a Bank

• Fill in the "Investor Data Entry" form.
• True copy of a valid Memorandum of Association, Trade License and Commercial Register.
• Authorized signatory letter issued by the Bank, duly authenticated.
• True copy of the authorized signatory valid Passport and National ID.
• A duly authenticated license letter from the Central Bank must be provided for the banks in the UAE. For banks outside the UAE, the authenticated documents from the official authorities must be attached.

Banks licensed outside the UAE must authenticate official documents: Trade License, Commercial Register and Memorandum of Association, by the UAE Ministry of Foreign Affairs or the UAE embassy in those countries.

• A true copy of a duly authenticated and valid Power of Attorney must be provided with a copy of representative’s ID.
• A Power of Attorney issued from other countries must be authenticated by the official authorities and the UAE embassy in those countries.

•  If the Investor is a Government

• Fill the "Investor Data Entry" form.  
• Authorized signatory letter issued by the Governor or his deputy, duly authenticated.

•  If the Investor is a Brokerage Firm

• Fill in the "Investor Data Entry" form.
• True copy of a valid Memorandum of Association, Trade License and Commercial Register.
• Authorized signatory letter issued by the Bank, duly authenticated.
• True copy of the authorized signatory valid Passport and National ID.
• Attach a true copy of Brokerage License from the UAE Securities Commodities Authority (SCA) or the Dubai Financial Services Authority (DFSA).

• A true copy of a duly authenticated and valid Power of Attorney must be provided with a copy of representative’s ID.
• A Power of Attorney issued from other countries must be authenticated by the official authorities and the UAE embassy in those countries.

•  Opening Heirs Account

• Fill in the "Investor Data Entry" form . (signed by the Representative).
• A copy of the Death Certificate.
• A true copy of a duly authenticated and valid Power of Attorney must be provided from all the Heirs to one Representative, with a copy of representative’s ID.
• True copy of the Heirs' passports.
• True copy of the Heirs' UAE Family Book/Marsoom. (For UAE Nationals Only)
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
• True copy of a valid Passport/Nationa ID/Residential Visa of the Representative.
• True copy of UAE Family Book/Marsoom of the Representative.(For UAE Nationals Only)

• The authentication of official papers concerning applications for issuance of investor number of foreign companies and institutions is required, for example: trade  license, the commercial register, the articles of association and the power of attorney issued from other states should be authenticated from the Embassy of the United Arab Emirates in that state or Consulate.
• If the investor is a minor (he must have a custodian) and that custodian must have a consolidated number (IN) in addition to the minor. If the minor has an (IN) the custodian must fill the investor data entry application in order to create a consolidated number for him.

• Applications received by the management by fax from  joint  stock companies or their registrars ,must be accompanied  by the supporting documents  of the  investor and  must  bear the company's  seal to confirm that the company officer had  reviewed the application and compared it with supporting documents.

•  Opening Joint Account

• The investor data entry form must be filled for each person separately.
• The investor data entry form must be filled for joint account too. It must show how the name is written in the joint account.
• The original stock ownership certificate (optional).
• Copy of the allotment notice for the recently listed companies.             
• Copy of the valid passports of all parties.
• Copy of the family ID/ Marsoon of all parties in case of citizen.
• Copy of national ID for all parties.
• Letter from both parties directed to Dubai Financial Market authorizing one or both parties to sign the market transactions and to trade.

 Conditions Of Permitting Companies To Trade In The Market According To Their Kind

• Limited liability companies are allowed to purchase securities in any joint stock company listed in the market provided it is fully owned by citizens. But if one of the partners is a foreigner, it may buy securities in any joint stock company that permits foreigners to own its securities.
• Partnerships may buy securities in their own name in all joint stock companies foreign companies which have branches in the State may buy securities in any joint stock company that permits foreigners to own their securities provided the license issued to the branch is a commercial license.
• Professional companies may not own securities of joint stock companies listed in the market, because they do not hold a commercial license that authorizes them to trade in the market, with the exception of companies which owned securities before the date of listing in the market such as tailor shops and pharmacies.
• Companies owned by same partners can generate investor numbers in the name of these companies and trade separately.        
• It is observed recently licensing of companies through the issuance of  trade  license and membership registration certificate, bearing membership certificate and commercial register number of the company and  therefore no need of the commercial register in this case.   

 Merging An Account Of A Private Enterprise With The Personal Account

 Investor Signature Authentication Procedures

The investor's signature form must be certified by Dubai Financial Market once only. It is considered a main and basic document that helps to identify and confirm the investor's identity when he applies for an action in the Market. The investor's signature form will be accepted and certified in the following cases:                   

• Certification shall be done by an official authority. The form must bear the seal of one of the following authorities: A brokerage office licensed by the market, an accredited bank, or a listed company in the market.  
• Certification of the investor's signature by the management, if the investor  appears personally at the market to sign the form, or if the investor's  representative presents the investor's original passport provided the passport bears the investor's signature.          
• For certification of the attorney's and custodian's signature other than that of the father, a valid power of attorney or a custodianship order of the court must be attached.
• In case of changing signature, the form must bear the seal of one of the following authorities: A brokerage office licensed by the market, an accredited bank, or a listed company in the market.

 Donation Of Profits Of Stock

• This takes place through the allotment of profits of stock (to mention the kind of stock) to the account of a certain charitable society, on a temporary basis, so that the investor will be the legal owner of these stocks which will be returned to his heirs when he dies. The charitable society  will not have the right to dispose of these stock by sale, transfer, and pledge or otherwise, unless the investor or his heirs (in the event of his death) determine otherwise.  The charitable institution will have the right only to the cash dividends of said stock. This right ends on the death of the investor, or if he chooses to cancel the donation.                  

1. If the investor wishes to transfer ownership of stock to the account of a charitable society, he must provide the management with the following:

• Filling the investor data entry form to the transferee.
• Filling the investor's signature form.
• Attachment of a true copy of the documents evidencing the charitable society's legal ownership the stock.
• Attachment of the original ownership certificates, if any. 
• Sending an official letter addressed to the market on the delegation to an officer of the charitable society of the authority to carry out the transactions at Dubai Financial Market.
• Payment of fees for the transfer of stock, by either the transferor or the transferee.         

• The investor data entry form filled by the transferor and transferee.
• The investor's signature form  filled for both parties.
• The original  ownership certificates , if any, must be attached.   
• The charitable society must be asked to send an official letter delegating to one of it officers the authority to carry out the transactions at Dubai Financial Market.
• Fees for the transfer of stock must be paid by either the transferor or the transferee.                                 

2. A special account must be opened in the name of the charitable society and the desired number of stock to be allotted be transferred to this account.
3. The Division will send a stock balance statement to the charitable society, only if there is a change in their account at the market (increase or decrease in the number of stock).
4. The Division will prepare a list of names of   donating investors, the number of stock, and kind of contribution, for information only.                                    

•  Opening An Account For A Charitable Society

•  Opening An Account For Charitable Society And Donation Of Dividends

For investors willing to allot part or all of the dividends of their stock to a benevolent society the Clearing, Settlement and Depository Division (CSD) provides a service for the transfer of securities to the account of said society and allotment of dividends thereto.       

 Preparations For Commencement Of Trading

• The investor or his representative must contact Dubai Financial Market or the company whose shares are owned by him, or the brokerage company licensed by the market. 
• He must take the steps for obtaining an investor number and deliver the certificates (if he has not done so before). 
• He must select an accredited broker in the market with which he wishes to deal.            
• The investor must fill the account opening form, and attach supporting documents and investor's number thereto.   

• The investor or his representative must fill the form for stock transfer to the broker.                    
• The broker must carry forward the data electronically by accessing the clearing system and sending the application. 
• The original transfer form must be submitted to the Clearing, Settlement and Depository Division (CSD) for approval of the transfer process.
• The Division will affect the transfer according to the procedures in force in this respect.
• When approval is given, the stock will be directly transferred from the investor's account at the Clearing, Settlement and Depository Division (CSD) to his account with the broker.                  
• The broker may carry out the sale of transferred stock in accordance with an authorization from the investor or his representative.                
• In case of purchase, the investor or his representative may directly authorize the broker to purchase the stock.

The shareholders of dual-listed companies are enjoying the option of transferring the shares to and from Dubai Financial Market. And that is based on the agreement signed  between  DFM, sub- listed companies and the company ’s registrar .

• Obtain an investor with DFM (if the investor does not have one from before).
• Delivering the original share certificate .
• Fill the securities Deposit and withdrawal Form.
• Receive the fees of depositing dual- listed companies shares in DFM.

Procedures :

• After  receiving the shares certificates  a receipt of the investor ’s securities will be issued .
• A receipt of receiving fees of depositing dual-listed companies shares will be issued, and the original receipt will be submitted to the investor.
• Share certificate registration letter will be prepared and sent to the registrar .
• The registrar of ARIG Company (Fakhro Karvy Computershare W.L.L.) will replay confirming the validity of share certificate and will give instruction to deposit the shares in to the investor’s account. 

• Obtain an investor with DFM (if the investor does not have one from before).
• Fill the Securities Deposit & Withdrawal Request Form .
• Attach the original allotment notice.
• Attach a passport copy or a  National ID copy (For non UAE nationals)
• Attach the articles of association and commercial registration in case of company.
• Attach a copy of power of attorney .
• Certified copy of the court judgment if there is a custodian other than the father of a minor investor ( If any).
• Attach the transfer fees in favor of the registrar and Bahrain stock exchange/ transfer (fees does not apply on founders).

• Atttach the fees of depositing dual- listed companies shares in DFM.

• In case of depositing shares in DFM the depositing Fees should be submitted.
• A voucher will be issued to the investor  or  his representative  for receiving the fees of transferring shares from Bahrain to DFM. The fees received is in favor of the company’s registrar and not DFM.
• Another receipt of receiving fees of depositing dual-listed companies shares at DFM will be issued.
• A share certificate receipt will be issued.
• Shares certificate registration letter will be prepared and sent to the company’s registrar on a daily basis attached with Securities Deposit & withdrawal request form, copy from the fees voucher, a copy from the share certificate receipt .
• The registrar of the company will answer via an official letter , instructing DFM to deposit shares in the investor’s account, the registrar’s letter should indicate the following details:

1. Investor’s Name.
2. Investor Name.
3. Investor’s Number with DFM
4. The Name of listed security.
5. The quantity to be deposited.
6. Broker's name (optional).
7. signature of authorized  signatories ( If any ).

Registration and depositing requirements :

•  Individuals : Investors ( UAE nationals) , GCC and  UAE residents .
•  Companies :  UAE and GCC companies only.

• The procedures of issuing electronic certificate for Al Salam-Sudan has been canceled and replaced with statement  of account or certificate balance statement issued by the bank ’s registrar (Khartoum Stock Exchange ).The statement or balance certificate should carry registrar’s stamp in order to complete the procedures of depositing the shares at DFM.
• A share certificate receipt form will not be issued  in case of receiving statement of account instead of the certificate, and the investor will be provided with a copy of  the statement stamped and signed as a proof of receiving the same.

• Investor name.
• Investor's number.
• Name of  Joint Stock Company.
• Number of shares to be transferred.
• Determine the transfer should be made from (Dubai Financial Market).
• Broker acount number in the other market.
• Investor's signature.
• Receive the fees of withdrawing dual- listed companies shares from DFM.

• Fill out Securities Deposit & Withdrawal Request Form.  
• Attach passport copy or ID copy for the individuals.
• Attach visa copy (for non UAE nationals).
• Attach the articles of association and commercial registration, which should illustrate the company’s nationality. 
• Attach the fees of withdrawing  dual -listed companies shares from DFM.

• Investor name.
• Investor's number.
• Name of  Joint Stock Company.
• Number of shares to be transferred .
• Broker's name if any  .
• Signature of authorized signatories ( If any).
• Receive the fees of depositing dual- listed companies shars in DFM. 

Notes :

• In  case of receiving a request of depositing shares in DFM and the broker 's names or broker 's account have been mentioned in the depositing letter, the shares will be deposited in the investor 's account with the broker .
• At the beginning of 2009, all Shuaa Capital shares have been withdrawal from Kuwait Securities Market and deposited in Dubai Financial Market. The withdrawal and deposit operations on the company symbol have been stopped since that time.
• In some cases  there are requests to withdrawal Gulf Financial House from Dubai Financial Market to Al Bahrain Stock Market for re-transfer the shares to Al Kuwait Stock Market, and the reason for that is there is no  sub- listed agreement signed between Dubai Financial Market, Gulf Financial House and Kuwaiti Company for Clearance. And in this case usually the investor 's letter  for withdrawal the shares doesn’t mentioned the investor 's number or investor 's  account with broker . Depository Department will accept the letter under one condition the letter should specify that the reason of transfer the share to Bahrain is to retransfer the shares to Al Kuwait Stock Market.

• Family transfers among relatives to the second degree. (grandparents, parents, brothers, sons, spouses).
• Transfers by inheritance (heirs account, account of each heir).
• Transfer from a company to a partner and vice versa.
• Transfer from parent company to subsidiary / affiliate.
• Transfer from a joint account to one of the parties and vice versa.
• Judicial transfers (by receiving court order).
• Transfer form founder to another founder.
• Transfer from a board member to another.
• Assignments (purchase and sale transactions) made before market opening or after the opening in case of new listing and that according to the company’s laws and regulations. 

• Wills donation or gift or otherwise, to those charities official in the State.
• Settlement with financial institution.
• Transfer of owner ship of securities for investors mentioned in the same share certificate.
• Sell of securities in an auction.
• Any other related transfers that occur in time, or transactions approved by the market management.
• Procedure of external transfer through DFM.
• The transferor and/or the transferee (or their representatives) shall consult the listed company, in which he holds stock, or its registrar or the Clearing, Settlement and Depository Division (CSD), or a licensed broker in the market to fill a stock transfer application.
• If the investor has a consolidated number from the market, and has delivered the original stock certificates before, and all supporting documents and signature forms were copied in the system, and after ensuring the matching of data and validity of signature, the transfer may be applied for at the Clearing, Settlement and Depository Division (CSD).
• If the investor does not hold an investor's number; he must first follow the steps for obtaining number first.   
• If the original stock certificates have not yet been delivered, he must deliver them directly to the company or its registrar, or hand them over to the Clearing, Settlement and Depository Division (CSD), which in turn sends the original certificates to the registrar to confirm their validity and de- freeze them, then the said division will take the security transfer action. 

• Family Transfers (Up To Second Of Kinship)

• Original share certificate for the transferor (if not delivered before).
• Copy of the allotment notice for the transferor in case of transferring of shares of latest listed companies.  
• Valid passport copy of both parties (if not delivered before).
• Copy of family ID of both parties (if not delivered before) only for UAE. nationals or Marsoom (Decree).
• Copy of National ID for all parties.
• Copy of marriage certificate or birth certificate to confirm the relation, in case no family ID were attached.
• Certified copy of the court judgment if there is a custodian other than the father of a minor investor (less than 21 years old).
• In case of a representative,a true copy of a duly authenticated and valid Power of Attorney must be provided with a copy of representative’s ID or power of attorney issued by Dubai Financial Market that gives the representative the power to transfer securities to his or others names, assign or transfer the ownership. Power of Attorneys issued from other countries must be authenticated by the official authorities and the UAE embassy in those countries.

• Transfer fees.

• Transfers to distance relatives (more than second degree) will be accepted only through serial of transfers.

• Transfer Of Securities Due To Inheritance (Heirs Account, Account Of Each Heir)

• Copy of death certificate (if any).
• Open an account in the name of heirs of the deceased person.
• Original share certificate for the deceased (if not delivered before).
• Copy of the allotment notice for the deceased in case of transferring of shares of latest listed companies. 
• Copy of the limitation of succession decision or distribution of estate.
• Power of attorney by the heirs to one of them to deal with securities on their behalf in accordance with a valid power of attorney certified by a notary public  or a power of attorney issued by Dubai Financial Market, the attorney will have the sole right to manage the account.
• Valid passport copies for the attorney and the heirs or the National ID (for UAE nationals).
• The attorney’s signature on the form, in case the heirs have appointed more than one attorney, the transfer form should carry all attorneys signature.  
• Transfer fees.

• If one of the heirs fails to authorize the same attorney, his share in the stock, determined for him in the court limitation of inheritance, will be set aside in his own account.   A new account shall be opened in the name of the heirs of the deceased and all stocks shall be transferred to a new account in which the agent has the sole right to manage. The name of heirs who have not assigned the attorney will not be mentioned in deceased heirs account name and a note will be added in the deceased heirs account that this particular heir has received his share.           
• Allotment of part of the inheritance to a certain party: a new account shall be open in the name of the said party, and all stock shall be transferred to the new account provided the agent be the only one entitled to run said account according to the court decision.
• If one of the heirs is a foreigner: Certain listed joint stock companies do not allow the ownership of their shares by foreigners. The heirs or the foreign heir will be told that it would be necessary to sell the stock in the market or to have them assigned to a national heir because the stock will not be transferred to the foreigner's account.   

• Copy of death certificate (if any).
• Heirs has to have an active investor number with DFM.
• Original share certificate for the deceased (if not delivered before).
• Copy of the allotment notice for the deceased in case of transferring of shares of latest listed companies. 
• Copy of limitation of succession decision or distribution of estate, and an official  list of security distribution among heirs issued by court or official party.
• In case of not presenting the limitation of succession decision or distribution of estate, the heirs of the representative should present an original letter issued and authenticated by court that illustrate the legal division of shares.
• In case of transferring the securities to one of the heirs, a legal assignment deed must be submitted or copy of a valid power of attorney made by all of the heirs authenticated in accordance  with the rules and regulations showing the assignment of the shares and the assignee must be one of the heirs.
• Valid passport copy, family ID or Marsoom or National ID (for UAE nationals)for the transferee (if not delivered before).
• Copy of the National ID.
• If there is an inherence attorney, a copy of the following must be attached, a valid power of attorney certified by a notary public.
• Signature of the transferee or the attorney on the transfer from.
• Transfer fees.

• Transfer Of Securities From A Company To A Partner And Vice Versa

• Original share certificate for the transferor (if not delivered before).
• Copy of the allotment notice for the transferor in case of transferring of shares of latest listed companies.
• Valid passport copy of the partner (if not delivered before).
• Copy of the family ID or Marsoom for UAE nationals.
• Copy of National ID.
• Valid copy of the trade license (if not delivered before).
• Valid copy of the commercial license (if not delivered before).
• Memorandum of article (if not delivered before).
• Authorized signatory letter issued by the company with a verified signature form of the signatory (if not delivered before), if the memorandum of article contains a clause that authorized a party to manage the company’s financial matters the authorized signatory letter is not a must.
• A copy of a valid power of attorney (if any) authenticated by a notary public or a power of attorney issued by Dubai Financial Market stating assignment or transferring the securities.
• Signature of all partners or their representative on the transfer form and that is in case of transferring from the company to a partner.
• Transfer fees.

• Securities can be transferred from one company to another if the partners in both are the same or if it’s one of the its related companies.

•  Transfer Of Securities From A Company To Another Company

• Transfer Of Securities From An Individual Account To A Joint Account And Vice Versa

• Original share certificate for the transferor (if not delivered before).
• Copy of the allotment notice for the transferor in case of transferring of shares of latest listed companies (if not delivered before).
• Valid passport copy (if not delivered before).
• Copy of the family ID or Marsoom for UAE nationals.
• Copy of National ID.
• Signature of the transferor on the transfer form.
• Transfer fees.

• Securities can be transferred from one joint account to another if there are common parties in both and all have to sign the transfer form.
• In cases where securities are transferred from the joint account to the individual account, the signature of the authorized signatories on behalf of the joint account is a must (joint or individual).

•  Transfer Of Securities From Joint A/C To Another Joint A/C

•  Transfer Of Securities From A Founder To Another Founder

• Valid passport copy for both parities (if not delivered before).
• Copy of family ID or Marsoom for both parities (if not delivered before).
• Copy of the National ID for both parties (if not delivered before).
• Valid copy of commercial License, trade license and the memorandum of article in case one or both parties were companies.
• Signature of the transferor on the transfer form.
• Transfer fees.

• In case of transferring founder shares, allotment notice is not required and that is because the allotment notice was not given to them by the company.
• The shares will remain under freeze even after the transfer until we receive an order from the listed company to unfreeze the shares.  

• Judicial Transfers (By Judicial Court Order)

• Original share certificate for the transferor (if not delivered before).
• Copy of the allotment notice for the transferor in case of transferring of shares of latest listed companies (if not delivered before).
• Issuing and investor number of the transferee. 
• Original letter of the court order which should clarify the details of the transfer.
• Valid passport copy, family ID or the Marsoom of the transferee.
• Copy of the National ID of the transferee.
• A copy of a valid power of attorney authenticated by a notary public or a power of attorney issued by Dubai Financial Market (if any).
• Signature of the transferee or the representative (if any) on the transfer form.
• Transfer fees.

•  Assignments

• Original share certificate for the assignor (if not delivered before).
• Copy of the allotment notice for the assignor in case of transferring of shares of latest listed companies (if not delivered before).
• Issue an investor number of the assignor.
• Original Assignment deed or a power of attorney dated before the date of opening of the market or a letter from the registrar confirming the transfer.
• Signature of the assignor of the formal undertaking letter as issued by CSD division.
• Transfer fees.

•  Transfer From A Company To Employees

Some listed companies and brokerage firms at DFM apply for a transfer of the listed company/ brokerage firm's owned securities into their employees' accounts.

Transfer Requirements:

1. Fill out Transfers Request Form signed by the transferor or send an official letter from the listed company/ brokerage firm at DFM signed by an authorized person on behalf of the listed company/ brokerage firm that contain the following information:

• Investor name and investor number of transferor and transferee.
• Name of listed securities to be transferred.
• Quantity of securities to be transferred for each employee.

2. Transfer fees: in case of listed company at DFM to employees is 0.002 from market value / per employee with a min. of AED 25 per transfer and in case of licensed brokerage firm at DFM to employees' accounts is 0.004 from market value / per employee with a min. of AED 50. In case of not transferring from the company's account, but from another underlying account is 0.004 from market value / per employee with a min. of AED 50.

•  Transfer Of Board Members

 A transfer between members of the Board of Directors of a company or from the company's account to one of its members of the Board of Directors.

Transfer Requirements:

• Fill out Transfers Request Form signed by the transferor.
• Attach identity documents of both parties.
• Transfer fees.

1. The investor must fill  the application to transfer of stock from CSD to  the broker, and send it to the broker.       
2. The broker must enter the data in the application in the electronic clearing system.
3. The broker must send the original application and carry forward the data electronically from his account to the Clearing, Settlement and Depository Division (CSD) to obtain transfer approval.       
4. The CSD Division must take one of the following two actions:
   • Approve the transfer if the data in the form matches with the data carried forward electronically stage, and fulfill all transfer requirements. Then the stock will be transferred directly from the investor's account with the Clearing, Settlement and Depository Division (CSD) to his account with the broker.
   • Reject the transfer for one of the following reasons. On rejection, the reason of rejection must be mentioned in the system and the original application must be sent to the broker concerned with an indication of the reason for rejection. The broker must complete the requirements and resend the application to the Division.

• Failure of the broker to enter the application data in the system.
• The investor's signature does not match.            
• Non-authorization or non-matching of the signature of the investor /agent / custodian in the signatures system.                   
• The quantity of stock mentioned in the application form does not match with the quantity carried forward in the system.               
• Data recorded in the application form does not match with data recorded in the clearing system.                
• Failure to update the investor's number in the electronic clearing system.
• Change or erasure of the application data without the broker' signature or stamp near the change.               
• Use of corrector (white) to amend or change the application data without the broker's signature near the change.             
• Delivery of a Photostat copy of the original application.   
• Absence or cancellation of power of attorney.                             
• Direct communication between the investor and the Clearing, Settlement and Depository Division (CSD) or vice versa and his refusal to transfer the stock to his account with the broker.                                                                  
• The signing by the investor instead of the custodian, in the case of a minor, and the signing of the father in place off the investor, in the case of an adult.   
• Incomplete data in the application form.
• The stamp of the brokers firm does not appear on the transfer form.
• Failure to electronically post the application to the Clearing, Settlement and Depository Division (CSD).
• Copy of the allotment letter is not attached or stamped by broker’s stamp (for the new companies that were issued in Dubai Financial Market from addition beginning of communications Emirates Integrated Telecommunications company (DU) and the subsequent companies).

• Obtaining evidence of the stock ownership.
• Transfer of stock from his account with the broker to his account with another broker.                   
• Keeping the stock with the Clearing, Settlement and Depository Division.            
• Pledging of stock. 
• Freezing  of stock at an official request from the joint stock company, court,  brokers office, the market management or others.                
• Transfer of stock from one investor to another.
• Any other relevant case  that may appear. 

• The investor must fill the application for transfer of stock between the CSD and the broker, and must send it to the broker who keeps the stock in his custody.                        
• The broker must enter the data, as mentioned in the application, in the electronic clearing system and send it electronically with the original  transfer application to the Clearing, Settlement and Depository Division (CSD) for approval.         
• The transfer operation will be  approved,  even if data do not match, because there is no harm from  the transfer of stock from the  broker to  the clearing, since the stock are kept in (CSD).

• Where it is not possible to obtain a transfer application signed by the  investor, and if the Division director or his representative approves, the broker or clearing may manage without the application form by entering data electronically only and mentioning the reason of transfer in the reference column :( e.g. Bankers lien, judicial order, etc.).             
• Where the stock transfer must be made to the Clearing for completing a transaction pertaining to stock in the customer's account with the broker, and it is not possible to obtain an application form signed by the investor, the Management must contact the broker to make sure that there are no unfulfilled commitments on his customer. Then the form will be filled and sent to the broker to enter the data in the system and carry it electronically to the management for approval.                   

• If a transfer application is received directly through  the Clearing, Settlement and Depository Division (CSD), the Division must send the application to the broker concerned to enter the data and transfer it to the Division for approval.  

• The investor must open an account with the second broker.   
• The first broker's approval of the transfer is a basic requirement for acceptance of the application. Therefore, the broker signature and the name of the authorized employee who signed on the form and the brokerage company’s stamp should be available on the form.              
• If  the investor desires  to transfer  part of his stock  to another broker  while the other part  remains at the Clearing, Settlement and Depository. Division (CSD), he must fill a transfer registry form   to transfer  the part which he wishes  to keep  with the said Division.               

• If the number of stock for which the evidence of ownership is to be obtained exists in his account with a broker, the investor must fill the application for registry transfer from clearing to the broker.                
•  After receiving the application, the Division will approve the transfer after ensuring the absence of any outstanding financial commitments on the customer to his broker, and that the broker's signature and stamp appear on the application. 

• If the investor wishes to trade in Dubai Financial market in the same stock regarding which the letter proving its ownership was issued, he must return the original copy of that letter to the Clearing, Settlement and Depository Division (CSD) so that it may de-freeze said stock.
• The letter of evidence of the stock ownership must contain the code of one company only.  
• If the investor loses the said letter and wishes to trade in the same quantity of stock mentioned in the proof of ownership, the investor must submit a letter to the Dubai Financial Market undertaking that he will bear full responsibility if it appears that the (lost) certificate had been used outside the said market for other purposes.

• If the investor changes his address, he must notify the Clearing, Settlement and Depository Division (CSD) so that it may update his address.
•  If the subscription fees are deposited in the bank, the investor must send a copy of the deposit slip to the Clearing, Settlement and Depository Division (CSD) together with the application for subscription.
• The investor can get a free stock balance statement one time during the subscription period.

1. He must fill the application for a stock statement and deliver it either by hand, fax, mail or through licensed brokers together with a fee of 10 AED per statement payable either in cash, by check or a deposit in the account of Dubai Financial Market.
2. A receipt of this fee must be issued to the investor.

• In case the attorney has signed the request of issuing the statement of account and he has the authority over specific security, the statement will be issues for these securities only.  
• If the statement is received by a broker, the investor must authorize the broker to receive the statement on his behalf, by recording a remark in this respect on the application form.

1. The applicant will send the official letter to the Clearing, Settlement and Depository Division (CSD) for reproduction of the report, indicating the type and date of report.

Power of Attorneys Issued by Dubai Financial Market

Cancellation of Power Of Attorneys Issued by Dubai Financial Market

Cancellation of Power Of Attorneys Issued by the Notary Public

• Investor/Representative must report to the Notary Public that issued the power of attorney, and request for a cancellation decree authenticated by the official authority.
• Providing DFM-CSD, the original copy of cancellation decree authenticated by the Notary Public.

Note: The Investor/Representative undertakes the responsibility to provide a copy of the cancellation decree to the Brokerage Firms.

• Name of investor whose securities will be pledged.
• Investor’s Number in DFM.
• Name and number of listed security Co.
• Date of pledge commencement.
• Pledge period (if any).
• Identify party entitled to profit distributions whether dividend or bonu share to be in favor of bank constantly.

• The bank letter should be signed by the authorized signatories on pledge transactions.
• Investor Signature on his letter should be authenticated in DFM.
• original Share certificate should be attached (in case it had not been previously handed over) or copy of allotment letter for the new listed companies.
• The investor should have an updated investor Number and in case he didn't get it, he should fill Investor Data Entry Application and attach it with the documents.
• The pledgee bank letter should contain the name & phone No. of the contact person of the bank in case of any inquiry.
• As per Dubai Islamic Bank instructions, Non-Islamic banks can't pledge Dubai Islamic bank shares unless they attach an approved authenticated letter from Dubai Islamic Bank including investor name, pledgee bank name and number of securities.

• Name of investor whose securities will be pledged.
• Investor’s Number in DFM.
• Name and number of listed security Co. that is required for pledge.

• When the listed companies take a decision regarding the distribution of cash dividends, the Clearing & Settlement department will provide the listed company with a report that indicates all pledged securities details of investors in that company.
• The listed company will distribute the dividends as per the report received from the market.

  Second: Transfer of Pledged Securities to Broker for sale:

• The number of securities required to be released is more than the pledged ones.
• The authorized signatories' signature of the pledgee bank does not match.
• The bank letter is not stamped.
• The information mentioned in the bank letter is not correct such as the investor's name and number and the name of the listed Company.

• If a dispute arises between the investor and the broker for reason needs time to reach settlement therefore is needed or if the case is referred to the market general manager or the grievances committee or for investigation in order to settle it.
• If the broker wishes to freeze the securities in the investor's account with him for reasons he deems appropriate. Fees amounting to 20 AED per separate transaction shall be charged.
• Other cases that may appear.

• In the event of failure to pay the entitlements of the complainant or other cause determined by  the court.

• In case of banker's lien or default in the settlement of debts or amounts due to the bank.                  
• Other case that may appear.

• In cases where the market deems appropriate.

• In the event of receiving a letter from the court on dividing an estate, the Clearing, Settlement and Depository Division (CSD) will mark the investor's number as deceased temporarily until submission of limitation of inheritance and completion of   the procedures of estate distribution among the heirs.

• Distribution of bonus shares among the staff of the issuing company. 
• Non-settlement of the value of securities of the issuing company.  
• Other cases that may appear. 

• In case of freezing by order of the bank because of banker's lien, the investor's approval must be obtained in such a way that his letter matches the bank's letter with regard to the names of companies, and number of securities in each company they demand freezing of its securities; or the lien contract must be attached to the bank's letter and signed by the investor.
• In case of freezing by order of the company issuing the securities, or the court or the lienee, an official letter mentioning the freezing and its reasons, must be submitted.
• Bonus shares pertaining to the liened securities until receipt of the lien or lien release transaction.    
• Bonus shares pertaining to court pledge until receipt of pledge or release letter.               

1. The Clearing, Settlement and Depository Division (CSD), will receive from the party concerned which submitted  the freezing request before,  an official letter  informing it about the defreeze of securities.  
2. The Division will compare the information about the name of investor   and company, number of securities to be de-freezed which listed in the letter and the electronic clearing system. If information matches, de-freezing will take effect immediately and the authorities concerned will be notified accordingly.  

• Name of investor in full .
• Reasons of reservation (if any).
• Name of joint stock company and number of securities to be liened, or value of securities to be reserved.

• A special account will be opened  with the broker for the purpose of transfer of shares reserved for sale and this is done through the Depository Department.
• If the broker sold part of the shares reserved and the value required by the court have been met, it will be re-credited to the investor’s. Reserved account until receiving another letter to release or sell the remaining amount.
• In the case of transferring part of the amount reserved  to the broker the officer who conducted the transfer transaction should follow up with the broker to make sure the completion of the sale process in the event of existence additional shares which had not been sold after satisfying the value of attachment, the officer concerned should return the same to the attachment account.
• In the case of distribution of cash dividends, the data of the shares reserved by the Court order or official authorities shall be provided to the listed company  regarding entitlement of profits, in case the market  was instructed in the attachment letter from the Court to prevent the investor from the disposal of dividends income, the listed company shall be notified to send  Profits cheques  to the court and are provided with the title and address.
• In case of receiving new order to reserve shares and the shares are already reserved before the shares will freeze to differentiate between two cases.
• If the court request to join two cases, the shares will be freezed and wont execute any sell or release instruction unless the instruction were received on behalf of two cases jointly only.
• Bonus shares belonging to the shares reserved as per court’s or official authorities order shall be frozen, pending to receipt of a letter from the court to lift the attachment and release the reserved shares.

1. The court will send an official letter to Dubai Financial Market expressing its wish to know the number of securities held by a certain investor.             
2. The Division will prepare a reply after auditing the investor's account.
3. The reply will be sent to the court concerned together with a securities balance statement (if any).    

• If the investor wishes to amend any information pertaining to him, he must fill an Change/ Add of Investor Information form and send it to the Clearing, Settlement and Depository Division (CSD) for necessary action.
• If the investor wishes to change his name, he must attach a change of name certificate with an application of change of name, certified by the court.
• If the investor wishes to change his passport number or the civil registration summary number, he must attach a copy of his old and new passports or the old and new civil registration summary record.     

1. The market has the complete freedom to approve giving qualified banks and financial institutions the capacity of foreign or local custodians in Dubai Financial Market.
2. To become a custodian, an institution must sign a custodianship agreement with Dubai Financial Market.
3. The custodians may act on behalf of their clients who invest in securities listed in the market.     
4. The client, but not the custodian, is the legal owner of securities. This ownership is reflected in the records of listed securities.
5. Any disposition by the custodians in the market will be considered on behalf of the clients and in accordance with heir instructions. The custodian is fully responsible for this. The custodian is allowed to open a special account for himself with the Clearing, Settlement and Depository Division (CSD),  and use it  on behalf of his clients, provided he holds a power of attorney  from the client  to deal in the market on his behalf.
6. The market will give the custodian the right to transfer securities from the CSD   to the "agent's" account for trading.  This account will be used for executing the transactions pertaining to custodians in the market. Securities may not be transferred to a trading account with a broker.
7. When there is an intention to trade, the broker receives the orders directly from his client, and the trade shall be affected using the agent's account.  For every number of investor having to do with a custodianship account, there is one agent's account to be observed for execution of trading in the market.

• Sign the custody agreement with DFM.
• Pay the custodian licensing fees of AED 7,000/annum.
• Sign the non disclosure agreement.
• Sign the investor number operation agreement (optional).
• Provide DFM with the custodians authorized signatories list.
• A Formal letter from the custodian addressed to DFM  specifies the member code in DFM’s system (limited to four digits only).
• A Formal Letter from the custodian addressed to DFM to request an electronic connection with AS400.

• A valid client’s passport.
• A client family ID (for UAE nationals).
• A clients national ID number.

• A valid commercial license.
• A valid commercial register certificate.
• Company’s article of association.
• Chamber of commerce certificate.
• Any other documents, which the DFM may request concerning the issuance of a client investor number.
• All the documents mentioned shall be certified by UAE embassy and Ministry of foreign affairs for non UAE licensed companies, for countries that does not have these government bodies then the documents have to be authenticated by any other institution that represent the government of that country.

• NIN Number.
• Investor Name.
• Global Custodian Name.
• Citizenship.
• Address.

• NIN number (max of 10 characters).
• Investor Name (max of 40 characters).
• Clients citizenship.
• The letter should carry the signature of the authorized signatory  of custodians.

3. Clients instructions letter to DFM.

4. For individual clients passport copy is required, for companies a trade license and central bank license in case of a fund (or a license from any government related institution of the country). We require such documents to ensure that the custodian client does not have an existing NIN number with DFM.

• External ID or proof of legal existence issued by public office, government agency or regulatory authority.
• Certificate of existence, certificate of good standing, commercial registration, certificate of trust or certificate of residence (tax document).
• Governmental agency’s official website screen prints.
• Articles of incorporation, memorandum and/ or articles of association, declaration of trust, trust agreement, partnership agreement, prospectus, offering memorandum. 
• For certain trust types such as unit trust or group trust that are not registered or regulated in their domicile country, a declaration of trust or trust deed may be considered as a proof of legal existence.

• it is a main requirement to specify the global custodian name in the account opening request send to DFM. CSD will refer to this information in case of receiving instruction from global custodians acting on behalf of their clients when changing local or global custodians. When changing the name of global custodians internally in custodians books they need to update the CSD in writing to adjust this information on the IN’s level. No change will occure over the clients name or IN number, the only change will take place will be over the name of global custodian. 
• When sending a request of issuing an investor number for one of the clients, custodians should investigate wether the client holds an existing investor number with DFM and ensure that the client does not hold any securities under the existing number. In case of an exising investor and holding, the local custodian should arrange to send a transfer request along with the account opening request for the shares to be transferred and the existing IN to be closed.  

• Name and investor number for both the transferor and transferee.
• Name of listed security.
• Number of securitites.
• Global custodian name in case of shares transferring from one global custodian to another.
• The agent's letter should carry a clause that gives instruction to close the transferor account after the transfer is done, and that for the first two types of transfers.
• The agent's letter should carry a clause that state there are no change in the beneficiary owner and that for the first two types of transfes. 

2. In case of  Transferring securities from an existing client’s investor number with DFM to custodian NIN number, custodians should attach client’s written instruction which has to be signed. The signature will be verified against the signature on the Entry of investors data form initially submitted (this only applies when the client is moving securities from private IN to custodian IN).

3. Custodians should should attach client's swift instruction or a letter from the client with same details mentioned in the custodian's letter.

• Letter from custodian A to close client IN, the letter should clearly specify the clients names and IN numbers and it should confirm that both custodian A and related brokers will remain responsible for all pending obligations resulted from trades occurred in old IN.
• Letter from custodian B to open a new IN on behalf of the client (all account openning requirements should be attached). In case custodian B did not manage to get legal authentication on clients documents, CSD will require the stamp and authorized signatures approval on the document and the legal documents should be attached woth KYC letter stating that custodian B has fulfilled the requirement of knowing the client.
• Letter from client to close the IN with custodian A and to open and link the new IN to custodian B. An alternative is a letter or swift instruction from the global custodian giving the same instruction to close and open their clients IN's. In case of submitting global custodian instruction instead of clients letter custodian A should ensure that the name of global custodian were specified in the IN's request initially submitted and the global custodian name should be clearly identified and matched in both local custodian letters A & B. We require both swift instructions submitted by global custodians to local custodian A and B.
• Letter from each broker linked to the old IN, confirming the following:

• Letter from custodian A instructing DFM to move securities from old IN with custodian A to new IN with custodian B (leaving enough shares at old IN to cover the settlement of all pending trades).
• Letter from custodian B instructing DFM to receive securities from old IN with custodian A to new IN with custodian B (leaving enough securities  at old IN to cover the settlement of all pending trades).
• Swift instructions received from global custodian to both custodian A and B.
• Transfer fees AED 300 per symbol.

C) Proposed Procedure:

All documentations described in (A) will be fully completed and submitted officially to CSD four days (working days)  before custodian B starts trading, (time limit is always subject to number of transactions).     


On T+0  (effective date):

• CSD will open new INs with custodian B and confirms the account  opening via e-mail.
• Trading will continue on old IN with custodian A.
• Immediately after closing trading session, CSD will suspend old INs with custodian A.
• After closing trading session, brokers will open trading accounts for new INs (online via the workstation and confirm opening accounts to custodian B) – custodian B will agree this with the brokers.
• After closing of trading  session both custodians will create the instructions described in (B above) and submitted them to CSD. If there were no positions to move, DFM needs to receive no instructions from any custodians and if received they won't be checked by DFM. 
• Before close of business day, DFM will transfer the securities from old IN to new IN and confirm completion of the process to both custodians via e-mail.

• Trading will no longer be active on old IN with custodian A. Trading will start on new IN with custodian B.
• Any pending trades will settle by custodian A  in old IN.
• After the settlement cycle is completed, both custodians will create instructions described in (B) and submit them to CSD.
• As soon as the instructions are received / before the close of trading, CSD will transfer the securities from the old NIN to the new NIN and confirm the movements  to both custodian.
• CSD will send position and trade reports to custodian B.

• Old IN with custodian A remain suspended.  New IN with custodian B will be active for trading.
• Any pending trades in old IN will be settled by custodian A.
• After the settlement cycle is completed, both custodians will create instructions described in (B) and submit them to CSD.
• As soon as the instructions are received / before close of trading, CSD will transfer the securities from the old IN to the new IN and confirm the movements to both custodians.
• After close of trading session both custodians will check if there are any open positions on the old IN (by now the position should be zero).  If there is a residual position, instructions will be created (as described in B) to move the remaining position to the new IN.
• CSD will send position and trade reports to custodian B.
• Before close of business day, assuming the position is zero, CSD will close the old IN with custodian A.

• All trading and settlement activity related to the client will be on new IN with custodian B.

Moving Clients Between Local & Global Custodians:

The procedure of moving clients between local custodian is very similar to the procedure of moving clients between local and global custodian both at the same time, with condition of having all instructions received from the local custodian, global custodian and the brokerage firms illustrating all transfer details. The fees of moving clients between local and global custodian is AED 600 per symbol.

Proxy Voting:

• Custodians send corporate action notification for the client.
• On receipt of client instruction, custodians fill up the proxy form along with relevant documents of POD and submit the same to the registered office of the company or the company secretary 48 hours before the meeting.
• The attendance slip is filled and sent with the proxy at the time of lodging.
• The identification of the person attending the meeting will be verified at entry point. However some companies would send a seperate attendance slip which has to be taken along for the meeting.
• Voting on agenda items by show of hands takes place.
• One shares constitutes one vote.
• The minutes of the meeting needs to be sent to clients on agenda items whether passed of not after attending the meeting.

 Clearing & Settlement Department Procedures:

• Trading and settlement date.
• Amount to be increased.
• Name of the broker who will execute the trades.

•  DFM will consider the custodian as a clearing member for the settlement process as they will settle all trades executed for their clients directly with (CSD) in accordance with the applicable DFM Rules.  Therefore, the custodian shall open a settlement account with one of the DFM settlement banks (ُEmirates National Bank of Dubai or Dubai Bank) for the purpose of settling trades at the DFM and the broker will receive his commissions pertaining to the deal, directly from the custodian .
• On the settlement date (T+2), Securities are transferred by DFM from the investor (seller’s) account to the investor ( buyer’s) account by 08:00 am.
• On the settlement date (T+2), settlement banks of DFM debits or credits the custodian account with the net amount in addition to DFM Commission by maximum 10:00 am.
• The custodian should ensure that sufficient funds are available in their account with settlement bank by maximum 10:00 am on the settlement date (T+2).  In case there were no funds available in the custodian account, the following  actions will be taken: 

• Rejected transactions value and its commission that the custodian is not accepting to pay.
• Net amount (net to collect or to pay) and total commission due for custodian before and after the amendment on the settlement report.
•  Names of the brokers who will pay the obligation with the details of the rejected trades that will be transferred to the broker.    

• Broker’s undertaking to pay the value of the transaction and its commission that is not accepted by the custodian.

• Custodian must inform the brokers about the rejected transactions and its commission by maximum on (T+1).
• The broker and the custodian must send their letters to Clearing and Settlement Department on (T+1) and by maximum 10:00 a.m. on (T+2) by email and fax.
• Forwarding the obligation to the broker is subject to CSD approval.
• All Custodians have the chance to open settlement account with both DFM settlement banks (ُEmirates National Bank of Dubai & Dubai Bank) as there are some cases where rejected trades are executed by brokers who have settlement account with one of DFM settlement bank that is different than the custodian’s settlement bank.

• The Clearing and settlement department shall send the custodian all daily trading reports details of custodian clients upon an official request from custodian to the CSD indicating the type of details required. These reports are sent through e-mail to custodians’ group mail addresses and its free of charge.
•  Any additional report requested by the custodian will be subject to additional charges as specified by the CSD from time to time.

• Formal letter from Brokerage Company, stamped and signed with the person who’s authorized and it should contain all the trade details.
• Copy of Trade Log Summary.
• Correction fees (0.003*number of shares*the highest price of deal) minimum fees AED 100 for each company.

• Bonds:

• Shares:

• After successful completion of sale and purchase in the trading hall in one session, the broker will be given half an hour between (2:00-2:30 pm) to review their trades and contact the Market Operation Division for correction in case of  any error in trading.  If he fails to do so during the specified period he will be held responsible for any errors that appear in his settlement report.                 
• At exactly 02:30 pm daily and half an hour after the end of the trading session, the Clearing and Settlement Department officer, will perform settlement by taking the necessary steps through the electronic clearing system.                                
• The settlement report is revised very carefully and sent electronically to DFM Settlement Banks (National Bank of Dubai & Dubai Bank) not later than 03:00 noon.                

• The broker  will deposit  a check or cash amount  in the Settlement Bank  in favor of the market or issues  an order to his banker  to transfer  the amounts payable  from  the brokers account  to his settlement account at the Settlement Bank.    
• The Settlement Bank will, not later than 10:00 am, complete the drawing and depositing of amounts due for payment  and collection in favor of the market and brokers together and deposit them in accredited settlement accounts in the settlement bank according to the settlement report sent from the market.
• The Settlement Bank will send the financial confirmation report to the Clearing, Settlement and Depository Division (CSD) not later than 10:00 am confirming the financial settlement due and collection from and to all brokers as stated in the Settlement Bank's report, in addition to the trading commission due on the broker in favor of the market.

• The broker will be suspended from trading (suspend from buying and allowed to sell only) at 10:00 am If he didn’t pay the full amount due in addition to the financial penalty.
• The broker will be suspended from trading (suspend from buying and allowed to sell only) at 10:30 If he paid less than half the amount due in addition to the financial penalty.
• The broker will be allowed to trade if the value of the amount due that is not paid is 20% or less from the total amount, and the next day (T+3) he is to collect by an amount that will cover his due but he has to pay the financial penalty.  Therefore, on T+3 the remaining due amount will be deducted from the broker account and transferred to DFM account.
• If the broker didn’t pay until (T+3), he will remain suspended until he pays the full amount and the penalty amount will be doubled.  Also, a management decision might be taken by the general manager to liquidate his bank guarantee  in order  to cover  the value of the transaction  due on him.           
• If the bank guarantee was liquidated, suspension of the broker from trading will continue until he submits a new bank guarantee to the market. 

• The suspension on the broker will be released when he pays the full amount due at any time during the trading session.
• The broker will be allowed to trade and restore his rights if the market management decides that he has the means and resources which help him fulfill his future commitments in time.
• the broker default is repeated more than three times  in one month, he will be given an official  warning signed by  the general manager or his representative  that the payment of the market's settlement obligation should not be delayed in future.
• The market board of directors has the right to impose financial penalty on the violating broker because of his default.
• The board of directors may recommend to the Authority to cancel the broker's name and terminate his license if he repeats default or delay in repayment of amounts due on him.

• In case the Broker exceeded the limit of the bank guarantee deposited with DFM BY AED 50,000 or more, he should deposit in the settlement account the difference between the bank guarantee deposited and the exceeded amount over the Bank Guarantee.  Thereon, if the Broker fails to deposit the exceeded amount by maximum 10:30 AM on (T+1) a financial penalty of AED 5,000 will be imposed.

• A bank guarantee should contain all  the conditions mentioned in the managerial note No. (32-2001) and if the conditions were not fulfilled it will not be accepted by the market.
• Bank guarantee should be renewed yearly (one year from the date of issuing bank guarantee) in case all terms and conditions remain unchanged, DFM requires an official letter from the issuer bank of the guarantee addressed to DFM, confirming the validity of the bank guarantee and it should contain number and value of the guarantee and the broker name.  in case of changing any conditions new bank guarantee should be submitted.
• The broker will be suspended from trading on the expiry date if he didn’t submit the renewal letter to the market.  In case the broker have deposited more than one bank guarantee he will be allowed to trade with value of the guarantee that is valid only.  

• Increasing the maximum trading limit.
• Executing sale operations which reduces the net payable.

• A new bank guarantee to the market including the amount of increase.

• The bank issuing the guarantee  sends  an official letter to the market  stating that they bear the  responsibility for  the increase in  the bank guarantee limit, provided they undertake to  pay entitlements  due as a result  of default by the broker.

• Deposit an amount of money either cash or check in DFM's Account with the settlement banks (National Bank of Dubai A/C: 0151588170 or with Dubai Bank A/C  0101019050713) and send copy of the credit advice along with an official letter from the Brokerage Company requesting to increase the trading limit on Fax #: 04-3317597.

• Sending an official letter to CSD Division requesting to increase the Trading Level Amount using the settlement due payments which they have to collect in (T+1) as a guarantee.

• Sending an official letter to CSD Division requesting to Freeze securities owned by the Brokerage Company or one of its owners.  In this case, the Trading Limit will be increased by 50% of the securities current value in the Market.  In case the broker exceeded over the original bank guarantee value shares shall be un-freeze on (T+2) only but if the broker wishes to unfreeze the shares on (T+1), he should deposit in DFM account the amount exceeded over the original bank guarantee value.