Friday, 22 September 2023 10:08 GMT

Qatar- QFMA okays regulations to activate capital market

(MENAFN- The Peninsula) QNA

Qatar Financial Markets Authority (QFMA) has approved an important package of regulations and rules that come within the framework of its initiatives for the capital market sector in Qatar and its continuous efforts to regulate and activate the capital market and protect its stability and customers as well as the diversity of its investment tools and mechanisms supporting the Qatar Stock Exchange (QSE).

QFMA explained in a statement that the approval of these important regulations came during the last meeting of its board of directors held under the chairmanship of Qatar Central Bank Governor and QFMA Board Chairman H E Sheikh Abdullah bin Soud Al Thani.

The regulations and rules approved by the QFMA board included approval of the regulations governing the activity of the market maker, which constitutes a new addition to the financial services activities.

It aims to activate trading and increase liquidity in the market while maintaining its stability and balance through specialised financial services companies licensed by QFMA and under its supervision by submitting continuous quotations for the purchase or sale of securities traded in the market.

The operational procedures of exchange-traded funds (ETFs) have also been approved, including the short sale of these units or components of the index, which is a new financial product, as well as treasury shares and treasury bills, which contributes to the diversity and multiplicity of securities available to investors.

In addition, the QFMA board approved the procedures for protecting the minor and small investors as a result of the transformation of the public shareholding companies into another type of companies stipulated in the Companies Law No. 11 of 2015.

Through these procedures, QFMA aims to provide adequate protection in accordance with international best practices for all shareholders, during the transformation of companies listed on the QSE to any other type of company.

Also, the regulations on employee incentive shares have been approved in public shareholding companies listed on the QSE, which allows listed companies to organise incentive programs for their employees while preserving the shareholders' rights in companies by granting them the right to approve these programs and monitor their implementation through periodic reports presented annually to the shareholders.

QFMA Chief Executive Officer Nasser Al Shaibi said the recent decisions of the board are an extension of efforts to support QFMA in its development of the capital market sector, which witnessed remarkable legislative activity during the year 2017.

He noted QFMA's assertion that the Qatari capital market has a strong legislative base according to the nature of the market and its needs, which was classified in the International Competitiveness Report 2017 and 2018 as the best legislative base for the financial market in the Arab region and the ninth internationally.

The report also ranked the Qatari market as the sixth best market on the international level in the Smallholder Rights Protection Index. This demonstrates the success of QFMA's efforts and strategy as well as its adaptation of the right policies towards realizing its vision in the development of the capital market sector, in cooperation with its partners and stakeholders in the capital market in Qatar and within the framework of Qatar National Vision and the financial sector strategy.


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