Securities administration – United Arab Emirates (Nasdaq Dubai)
Income collection
Due to differences between the Dubai Financial Market (DFM) and Nasdaq Dubai systems, all cash disbursements, relating to Nasdaq Dubai securities, to investors will be handled outside the DFM system.
Income payments are managed by the Issuer through a paying agent (that is, a local bank), which will then make cash payments directly to eligible shareholders (or their designated local custodian) via cheque or bank transfer. Local custodians then credit the accounts of their clients.
Cash dividend process:
- The cash benefits are declared by the Issuer during the AGM for the securities including details of events, that is date of book closure/Record date, payment date, dividend rate, etc.
- The announcements and disclosure will be made public via the Nasdaq Dubai CAP platform and through the Nasdaq Dubai website.
- On the book closure/record date, the list of eligible shareholders, that is the Share Book, is provided to the Issuer by the Nasdaq Dubai CSD.
- The distribution of cash benefits is payable by the Issuer/Paying agent directly to the shareholders via cheque or bank transfer. In line with the general rules for the DFM, there are no fixed rules for payment via cheque or bank transfer.
- The designated local custodian of the NIN receives the cheque or bank transfer and remit funds to the cash accounts of their clients, usually on the same day.
Corporate actions
The main source of corporate actions information is Nasdaq Dubai itself.
The ex-date for trading in respect of a corporate action benefit is one business day prior to the Record date/book closure.
Corporate action events that carry security benefits, Nasdaq Dubai via the DFM system will process and execute the security credits on the payment date to the eligible account holders.
Stock Dividend/Bonus Issues:
- The stock dividend/bonus is a security benefit declared by an Issuer for existing securities held.
- The announcement and disclosure will be made public via the Nasdaq Dubai CAP platform and through the Nasdaq Dubai website.
- On the payment date the DFM system executes the event and disburses the security benefits to the respective eligible CSD accounts in which the balances are held.
- The distribution of additional securities (bonus) is notified by Nasdaq Dubai through email to Nasdaq Dubai Members and Custodians and also published on the Nasdaq Dubai website. The Issuer is also informed of the new shares outstanding post-bonus allotment.
Note: The processing of the security benefits on the payment date will be done after market hours.
Stock Splits:
- In this event type, the Issuer increases the number of shares outstanding by reducing the par value of each share.
- The Issuer announces the details of the stock split via the Nasdaq Dubai CAP platform and on the Nasdaq Dubai website.
- On the payment date, the corporate action event is processed by DFM and disbursement of securities is executed to respective eligible CSD accounts where the balances are held.
- The completion is notified through email to Nasdaq Dubai Members and Custodians and also published on the Nasdaq Dubai website. The Issuer is also informed of the new shares outstanding post-stock split.
Note: The processing of the security benefits on the payment date will be done after market hours.
Organisation of AGM/EGMs
Nasdaq Dubai acts as a source of General Meeting information for its members. Information and notification are disseminated in English within a few hours after receipt.
Voting entitlement is determined by the position at record date and split voting is allowed.
The results of the AGMs and EGMs are announced to all investors by Nasdaq Dubai on their website or through their corporate action announcements platform.