(MENAFN- The Peninsula) The Peninsula
DOHA: Qatar Stock Exchange (QSE) yesterday announced that Qatar Financial Markets Authority (QFMA) has approved a proposal not to suspend trading on the shares of the companies listed on the Qatar Stock Exchange on AGM days as of January 1, 2018.
The QFMA approval included a set of procedures to be followed in implementing the decision in terms of identifying the shareholders eligible to attend the general assembly meeting and the shareholders entitled to bonus shares as well as the date of payment.
The procedures indicated that an investor shall be considered a shareholder from the date of purchase without waiting for the settlement period, whereas the selling shareholder has no right to attend the meeting or receive cash dividends and bonus shares if they make the sale before the AGM day without waiting for the settlement period.
Trading on AGM days is in line with the best practices in the international financial markets. This procedure provides many advantages as it allows investors to trade continuously, which greatly enhances liquidity in the market. It also helps the successful launch of new products easily and allows the investor to buy and sell on the day of the General Assembly. Thus this procedure will be useful for investors, the market, listed companies and brokerage firms.
The QSE noted that the new mechanism is consistent with the best practices in the international financial markets and offers various investment advantages as it allows investors to trade during general assembly meetings instead of suspend trading during such events, which would be in favor of boosting liquidity in the market.
This mechanism will also be helpful to ease the successful launching of new tradable products. In general, the non-halting of trading during general assembly meetings will be very supportive of both the investors and listed companies and the securities market as well.
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