The Securities and Commodities Authority asked the investors to ensure that the authority they deal with obtained a valid license, due to the prevalence of deception and to protect their rights.
And she emphasized in an awareness bulletin, "Emirates Today" obtained a copy of it, that it is working on the continuous verification of the commitment of the licensing authority to the standards of integrity in financial transactions, the commitment of employees to behavioral and ethical aspects and the absence of their records of judicial cases or penalties related to breach of trust and breach of trust or fraud.
In detail, the Securities and Commodities Authority has confirmed that, since its inception, it has been issuing various types of licenses or approvals to entities wishing to engage in activities related to securities services, as the legislative and regulatory body responsible for regulating these services.
In this context, the Authority is in the process of licensing companies, and the main functions in them, keeping in mind one of its most important goals of protecting the rights of customers through the application of best practices in verifying the efficiency of those companies to conduct business related to licensing, and the appropriateness of employees to deal with investors.
In order to achieve greater protection for the rights of customers, the Authority believes that the outputs of the professional licensing process require continuous verification of the commitment of the licensing authority to the standards of integrity in financial transactions, the commitment of employees to behavioral and ethical aspects and the absence of their records from judicial cases or penalties related to breach of trust and breach of trust Or fraud.
In view of the multiplicity and diversity of the entities that seek to attract the investments of the customers, and the spread of deception operations at some of them, the investor should not conduct transactions related to the securities services, except with the bodies that provide their services in a professional and legal manner, and he must take all necessary precautions to ensure that these entities, whether they are Companies or individuals are entities licensed by the authority to conduct its business properly.
The authority indicated that the approvals or certificates issued by other government bodies or agencies of the companies are not sufficient to practice the securities services, as they are not more than administrative approvals and licenses, other than the license issued by the authority, which is considered a professional license.
It can be confirmed that the entity with which the investor is dealing is practicing in a legal way by requesting access to the license issued by the authority, which was keen to distinguish it with a three-dimensional stamp (Hologram), as well as ensuring that the license that is viewed is valid. Investors can view the names of the licensed entities by visiting the Authority’s website www.sca.gov.ae.
The Authority issues a number of licenses and approvals that authorize the authorities to conduct financial services business, such as: a stock brokerage license, a margin trading license, a commodity brokerage license and future commodity contracts, a financial advisory and financial analysis license, a custodian license for securities, a market maker's license, approval to practice The activity of the securities lending and borrowing agency, and the approval of brokerage firms to trade in foreign markets.
Subscription rights trading
The Securities and Commodities Authority confirmed that trading the subscription right provides the current shareholders who are not willing to participate in increasing the capital of the public shareholding company, the opportunity to sell their right to others who wish to subscribe to the increase shares, and the trading of the right of subscription also gives the opportunity to the current shareholders who do not have the financial ability to Participation in the subscription, liquidating part of their contribution to the company and participating in the subscription, by selling part of their rights and using the proceeds from the sale process to participate in the subscription.