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Procedures for Executing a Pledge on Dubai CSD

Service ID
3.0.1

Details
  • Pledging Securities: It is preserving securities in a special account known as (MEMBER X) according to an official request from Banks and Financial Institutions with the consent of the investor.
  • Release of Pledged Securities: In the case of releasing pledge, once the Pledgor Member has paid the entire commitments, the Pledgee Member will send the request through e-Services to release the Pledged Securities and the Investor will have the rights and control over these securities.
  • Transfer of Pledged Securities to the trading member for Sale: In case the investor and the pledgee member would like to deal in the Pledged Securities and transfer them to the investor’s Pledged Securities Account with a trading member to sell in DFM
  • Re-pledging of the Pledged Securities transferred to a trading member to be sold: If the investor and the pledgee member are willing to re-pledge the Pledged Securities that are transferred to the trading member to be sold again, the pledgee member will request to re-pledge the Pledged Securities.
  • Pledge Release of Transferred Securities to trading member for sale: If the investor and the Pledge Member are willing to release of transferred Pledge Securities to trading member for sale from the trading member account to the Dubai CSD account.The Pledgee member will request to release the pledged securities that transferred to a trading member for sale advising the same.
  • Transfer pledged securities from pledgee member to another: If the investor wishes to transfer his pledged securities from one pledgee member to another pledgee member with all the pledge data matched between the two pledgee members.
For more information on this service, please contact:
Dubai CSD
T: +971 4 305 5555 (Call Center)
E: customerservice@dfm.ae 

Fees
  • Pledge fees which are two thousands (0.002) of the security’s market price or two ten thousands (0.0002) in the case of bonds (number of securities x last closing price x 0.002), noting that the minimum pledge fees are AED 100 per company.
  • The fees for the release/transfer of Pledges Securities to the trading member for sale/re-pledging of the securities transferred to the broker for sale is AED 100 for each per company
  • The fees for there-pledging of transferred Pledged Securities to the trading member for sale is AED 100 for per company
  • The fees for the Releasing of transferred Pledged Securities to the trading member for sale from the trading member account to CSD account is AED 100 per company.
  • Pledge Transfer Fees from Pledgee Member to another: 0.0001 (one per ten thousand) of the market value of the shares

(Pledge Fees = No. of securities*Closing Price*rate (Minimum AED 100 per company)



Procedures

Pledge Securities:

  1. The Pledgee Member will apply on Dubai CSD eServices Portal.
  2. Dubai CSD will receive the request.
  3. Payment of Fees
  4. Dubai CSD will review the request and execute the pledge on securities.
  5. Dubai CSD will approve the request on Dubai CSD eServices Portal.

Release of Securities:

  1. The Pledgee Member will apply on Dubai CSD eServices Portal
  2. Dubai CSD will receive the request.
  3. Payment of Fees
  4. Dubai CSD will review the request and execute the Release on Pledged Securities.
  5. Dubai CSD will approve the request on Dubai CSD eServices Portal

Transfer Pledged Securities to a Trading member for Sale:

1. The Pledgee Member will apply on Dubai CSD eServices Portal.
2. Dubai CSD will receive the original copy with signatures (Pledgee Member + Investor).
3. Payment of Fees
4. Dubai CSD will review the request and execute the pledge on securities.
5. Dubai CSD will approve the request on Dubai CSD eServices Portal.

Re-pledging of the Pledged Securities transferred to a Broker to be Sold:

  1. The Pledgee Member will apply on Dubai CSD eServices Portal.
  2. Payment of Fees.
  3. Dubai CSD will review and execute the request.
  4. Dubai CSD will approve the request through Dubai CSD eServices Portal.

Pledge Release of Transferred Securities to Broker for sale:  

  1. The Pledgee Member will apply the request on Dubai CSD eServices Portal.
  2. Payment of Fees.
  3. Dubai CD will review and execute the request.
  4. Dubai CSD will approve the request in Dubai CSD eServices Portal.

Transfer pledged securities from one pledgee member to another:

  1. First pledgee member will submit original pledge release letter.
  2. New pledgee member will submit original pledge letter
  3. Original Letter from investor to move his securities with matched data with new pledgee member letter
  4. Dubai CSD will move the pledged securities to new pledgee member
  5. Dubai CSD will issue release letter to first pledgee member & pledge confirmation letter to new pledgee member.
  6. Dubai CSD will issue voucher



Required Documents

Pledge Securities: 

  1. The Pledgee Member should apply for Pledge Request through Dubai CD eServices Portal.
  2. Attach copy of letter from the investor to Dubai CSD authorizing the Pledgee Member to pledge their securities. It is to include all of the aforementioned data as indicated in the Pledgee Member letters and to be identical to it.
  3.  Fees to be paid through e-payment or Bank Transfer

Release of Securities:

  1. The Pledgee Member should apply for Release Request through Dubai CSD eServices Portal.
  2. Fees to be paid through e-payment and Bank Transfer

Transferring Pledged Securities to a Trading member for Sale:

  1. The Pledgee Member should apply for the request through Dubai CSD eServices Portal.
  2. Dubai CSD will receive the original copy with signatures (Pledgee Member + Investor).
  3. Fees to be paid through e-payment and Bank Transfer

Re-pledging Pledged Securities Transferred to a Trading member to be Sold:

  1. The Pledgee Member should apply for the request through Dubai CSD eServices Portal.
  2. Fees to be paid through e-payment and Bank Transfer.

Pledged Releases of Transferred Securities to a Trading member for Sale:

  1. The Pledgee Member should apply for the request through DFM eServices Portal. 
  2. Fees to be paid through e-payment and Bank Transfer

Transfer pledged securities from one pledgee member to another:

  1. Pledge release letter from the first pledgee member. 
  2. Pledge letter from the new pledgee member
  3. Investor letter
  4. Fees to paid through bank transfer

How to Apply?
Online through Dubai CSD eServices Submit by mail or by hand (for Transfer Pledged securities from one pledgee member to another service ONLY)

FAQs

The pledgee bank may apply to the Court to issue an order of sale and submit such an order to the Dubai CSD stating therein, the investor's name, investor's number, the name of the security and the number of securities pledged in favor of the pledgee bank.