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10:00
01 january 2014
Market Watch
Contact Information:
Customer Service
+971 4 305 5555
customerservice@dfm.ae

Note: All DFM current fees will be subject to VAT, effective 1st January 2018. The fee will be added to invoices as per the UAE Federal Law No.8 of 2017.

 

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Corporate Actions

Service ID
2.2.1

Details

Corporate Actions decision is taken through the general assembly held annually. The Clearing, Settlement and Deposit Department shall execute the action on behalf of the Public Shareholding Company upon request and by an official letter addressed to Head of Clearing Depository and Settlement Division indicating the type of the action, the percentage of the distribution, the entitlement date, the book closing date and the execution date. The letter should be signed by the authorized signatory at the company and should carry the company official stamp.



 For more information on this service, please contact:
DFM Customer Services
T: +971 4 305 5555
E: customerservice@dfm.ae

Fees
AED 25, minimum of AED 25,000 and maximum of AED 500,000 (per investor in the register)

Procedures

The company must send an official correspondence addressed to Head of Clearing Depository and Depository Division stating the AGM resolutions and containing the following details:

  • Type of corporate action
  • Trading, settlement and execution dates
  • Attach a certificate to amend the company's Articles of Association issued by the Securities and Commodities Authority, in case of any decisions that may affect the company's capital

 • The action will be executed on the settlement date or on effective date depending on action type

• An official letter will be sent by DFM to confirm the corporate action
• An invoice will be issued by DFM for the company to settle the payment

Required Documents

1. The company’s Request 

2. Annual General Assembly resolution.

3. Certificate to amend the company's Articles of Association issued by the Securities and Commodities Authority, in case of any decisions that may affect the company's capital


How to Apply?
Through email to (registry@dfm.ae) or in person at the DFM Depository, World Trade Centre, Dubai

FAQs

How long do we have to settle any invoice issued against a service received?
Within two weeks of receiving the invoice.
When does the settlement take place?
Settlement is completed after two market days from the trading date.  
What types of reports do we receive in case of corporate actions?
  • In the case of a dividend distribution, you will receive the Sharebook and Pledged Shares Report. 
  • In the case of a dividend and bonus shares distribution, you will receive two sharebooks, one before the bonus distribution to allow you to calculate the dividend before the bonus addition – Pledge Shares Report – and the second sharebook after with the Bonus Addition & Bonus Shares Report, which shows you the bonus added per IN. 
  • In the case of a bonus shares distribution, split and conciliation, you will receive the Sharebook & Bonus Shares Report. 
What services are available for an issuer (listed company)?
A core objective of the DFM is to provide valuable services to its listed companies which will reduce their efforts and costs if they were to appoint a third party or manage internally, as many of the services are electronically available via eServices on the DFM website. Issuer services are categorized upon your needs and include Sharebook Services, Corporate Actions Services, AGM and EGM services, and many other services related to communications and investor relations. Please click here for the full list of issuer services.
When is the effective date of a Corporate Action? 
Corporate Actions are effective on the book-close date.