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Procedures for Executing a Pledge on DFM Listed Securities

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 Broker 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 broker certified by DFM to sell in DFM
  • Re-pledging of the Pledged Securities transferred to a broker to be sold: If the investor and the pledgee member are willing to re-pledge the Pledged Securities that are transferred to the broker to be sold again, the pledgee member will request to re-pledge the Pledged Securities.
  • Pledge Release of Transferred Securities to Broker for sale: If the investor and the Pledge Member are willing to release of transferred Pledge Securities to broker for sale from the broker account to the CSD account.The Pledgee member will request to release the pledged securities that transferred to broker for sale advising the same.
For more information on this service, please contact:
DFM Clearing & Settlement
T: +971 4 305 5555 (Call Center)
E: Clearing&Settlement@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 for per company.
  • The fees for the release/transfer of Pledges Securities to the broker for sale/re-pledging of the securities transferred to the broker for sale is AED 100 for each per company
  • The fees for the  re-pledging of transferred Pledged Securities to the broker for sale is AED 100 for per company
  • The fees for the Releasing of transferred Pledged Securities to the broker for sale from the broker account to CSD account is AED 100  per company.

Procedures

Pledge Securities:

  1. The Pledgee Member will apply on DFM e-Services Portal.
  2. DFM will receive the request.
  3. Payment of Fees
  4. DFM will review the request and execute the pledge on securities.
  5. DFM will approve the request on DFM e-Services Portal.

Release of Securities:

  1. The Pledgee Member will apply on DFM e-Services Portal
  2. DFM will receive the request.
  3. Payment of Fees
  4. DFM will review the request and execute the Release on Pledged Securities.
  5. DFM will approve the request on DFM e-Services Portal

Transfer Pledged Securities to a Broker for Sale:

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

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

  1. The Pledgee Member will apply on DFM e-Services Portal.
  2. Payment of Fees.
  3. DFM will review and execute the request.
  4. DFM will approve the request through DFM e-Services Portal.

Pledge Release of Transferred Securities to Broker for sale:  

  1. The Pledgee Member will apply the request on DFM e-Services Portal.
  2. Payment of Fees.
  3. DFM will review and execute the request.
  4. DFM will approve the request in DFM e-Services Portal.



Required Documents

Pledge Securities: 

  1. The Pledgee Member should apply for Pledge Request through DFM e-Services Portal.
  2. Attach copy of letter from the investor to DFM 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 DFM e-Services Portal.
  2. Fees to be paid through e-payment and Bank Transfer

Transferring Pledged Securities to a Broker for Sale:

  1. The Pledgee Member should apply for the request through DFM e-Services Portal.
  2. DFM 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 Broker to be Sold:

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

Pledged Releases of Transferred Securities to a Broker for Sale:

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




How to Apply?
Online through DFM eServices

FAQs

The pledgee bank may apply to the Court to issue an order of sale and submit such an order to the DFM 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.