His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State, in his capacity as Ruler of the Emirate of Abu Dhabi, issued a law amending the legal form of the Abu Dhabi Stock Exchange, to become the Abu Dhabi Securities Market Company "a public joint stock company", to replace the Abu Dhabi Stock Exchange Corporation, and be fully owned Abu Dhabi Development Holding Company.
The law specified the authorized capital of the company at 500 million dirhams, divided into 500 million shares, with a nominal value of one dirham per share.
The law also set the issued capital of the company at 100 million dirhams, divided into 100 million shares, and the nominal value of the share is one dirham. All shares of the company upon incorporation are wholly owned by Abu Dhabi Development Holding Company.
The law authorizes shareholders to sell or transfer some or all of their shares to any other party or shareholder. They may also offer the company’s shares for public or private subscription, according to what is specified in the company's articles of association.
The law defines the company's competences in managing and organizing the market, including listing and trading in financial instruments and instruments, and undertaking deposit, clearing, settlement and central clearing operations, in addition to providing an appropriate environment for the interaction of supply and demand forces in the market in accordance with the principles of justice, transparency and efficiency, and what is required to do regulatory work And implementation, supervision, control and inspection.
The Abu Dhabi Stock Exchange Company is also concerned with providing, preparing, and managing one or more platforms for trading securities and financial instruments, whether through a trading session or outside it, or any other mechanism developed, and providing related services, such as services provided to brokers, market makers, liquidity providers, and other services Innovated.
The company will work according to the law to provide, prepare, and manage one or more platforms (or markets) for listing securities and financial instruments, and to provide services to issuers, such as underwriting services and support services for underwriting, record-keeping services, managing general assemblies, distributing cash dividends, and other innovative services.
The law also authorized the company to perform deposit, clearing and settlement activities for securities and financial instruments, and to provide related services, including investor services, safe custody and securities lending and borrowing services, and other services developed. In the same way, the company can perform the central clearing activities (the central counterparty) and provide related services, including managing and investing the cash collateral, securities guarantees and other services.
The law also specifies the company to issue and list securities and financial instruments and derivatives thereof, in addition to organizing, implementing, supervising, controlling and inspecting institutions and companies operating in the market, such as brokers, custodians, clearing members, and others, and undertaking any necessary procedures for that, including issuing licenses and registration, and determining and collecting a charge Your services and other procedures.
The company will also monitor trading operations on securities and financial instruments in accordance with the legislation in force, in addition to providing services to resolve disputes arising between the parties in relation to operations on securities and financial instruments.
According to the law, the Abu Dhabi Securities Market Company has the right to establish, acquire, enter into a partnership or own any company, institution or fund whose purpose is to carry out any financial market activity or any other commercial activity supporting the work of the market, in accordance with the rules and procedures approved by the shareholders.
The company also has the right to undertake investment activities in all its forms and to manage the financial surpluses owned by it inside and outside the country, in addition to providing financial services and products related to the operational and commercial activities of the market.
The company will monitor the trading of securities and financial instruments.