"Securities": not less than one member

Requiring listed companies to have a percentage of women’s representation on boards of directors

Abdullah bin Touq: “We are working to enhance the investment environment for the local financial markets, and to support their legislative structure.”

The Board of Directors of the Securities and Commodities Authority, in its new formation, finally held its first meeting for the current year, headed by the Minister of Economy and Chairman of the Authority’s Board of Directors, Abdullah bin Touq Al-Marri, through visual communication techniques.

Bin Touq said that improving the performance of the country's financial markets in accordance with the best international practices is a priority for the Authority and its boards of directors during the next phase, and we will work with various partners to enhance the investment environment for local capital markets and support their legislative structure, in line with the determinants of the UAE Vision 2021. And the state’s goals for the next 50 years.

He revealed that the first meeting of the Board of Directors focused on developmental axes such as requiring listed companies to have a percentage of women’s representation in their boards of directors, with a minimum of one member, and organizing and transferring operational and executive powers between the Authority and the local stock markets, as well as new procedures for developing commission mechanisms for trading of financial derivative contracts. And the regulation of central depository activity.

According to a statement issued yesterday, the Authority’s Board of Directors approved the obligation for companies to have a representation of women in the Board of Directors, provided that the percentage of women’s representation in every listed company’s board of directors is not less than one member, by amending the text of Clause (3) of Article (9) From the Authority’s Board Chairman Decision No. (3 / R.M) of 2020 regarding the approval of the Public Shareholding Companies Governance Manual.

The Board of Directors of the Authority also approved the issuance of the rule book for the financial activities of the Authority, in a manner that does not interfere with the functions that will be transferred to the financial markets under Decree-by-Federal Law No. (22) of 2020 regarding the distribution of competencies and powers between the Securities Commission. Financial, commodity, stock and commodity markets licensed in the state.

The Authority’s Board of Directors approved the transfer of operational and executive powers that will be transferred to the markets agreed upon between the Authority, the Abu Dhabi Securities Market and the Dubai Financial Market. The authority should review it and make its observations on these rules, if any, and suggest making amendments that it deems necessary to be consistent with the standards issued by the organization "IOSCO", in addition to approving the authority to sign a service level agreement with the financial markets.

The Authority’s Board of Directors also approved, during the meeting, the proposal to amend trading commissions on derivative contracts, as well as to make legislative amendments regulating trading commissions on derivative contracts, and to amend some provisions of the Authority’s Board Chairman Decision No. (32 / RM) for the year 2018. Concerning the technical fees due to the Authority.

The Board also agreed to enable the central depository companies to practice the activity of a registrar of private joint stock companies, and to allow them to keep records of unlisted public shareholding companies.

The Board also mandated the Authority’s management to present a proposal on the nationalization policy in the securities sector, with clarification of the settlement mechanisms and incentives to encourage the licensed companies to be Emiratized.

Foreign currency pairs

The Board of Directors of “Securities” approved the inclusion of a new group of foreign currency pairs and metals within the renewable future contracts on the DGCX, in accordance with a set of regulatory controls and conditions, foremost of which is the stock exchange conducting the necessary studies to survey the opinion of market parties, to determine the expected demand for each of Those contracts and the prospects for the success of the listing, and the Stock Exchange verifies that there are no legal impediments to the central banks issuing the currencies to which the contracts are related to the listing of those contracts, provided that the relevant department of the Authority is notified of that study one month before listing, and a study is conducted to evaluate the performance of the contracts that are listed. Periodically, to evaluate the success of the contracts that are listed, provided that the ASE promotes each new contract that is listed long enough before it, to attract local and international investors.

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