Monday, May 6, 2019

Dubai Financial Market Essay Example | Topics and Well Written Essays - 1750 words

Dubai Financial Market - Essay patternDubai Financial Market (DFM) is one of the few stock exchanges of UAE which was established as a public presentation on March 26, 2000 (Dubai Financial Market, 2013a). It has its own independent body which was formed as a get out of a resolution passed by the Ministry of Economy (MOE) number 14 2000 (Dubai Financial Market, 2013a). It operates as secondary merchandise responsible for trading of securities, bonds, units of investment fund, any other financial instrument which is issued by the public control stick stock companies, Federal government or any other local government & public institutions of the country. DFM was established as a mutual stock company with a paid up capital 8 billion Dirham with a par value of 1.6 per sh atomic number 18. The first IPO by DFM had resulted in more(prenominal) than 8 billion Dirham. The main objective of DFM is to make it a world class marketplace situate and provide the stakeholders with innovati ve facilities in trading, settlement, depositary of securities and clearing in an efficient method. Some of the important market set of DFM are efficiency, transparency, innovation, confidentiality and integrity. The existence of a strong investment market in UAE has attracted several potential investors and is considered as one of the most potential investment hubs of the world. As per a survey conducted by the Economic plane section of Dubai 28 pct of the surveyed respondents had claimed Dubai to the most lucrative investment destinations of the world (DED, 2012).Mission and Objectives of DFMThe mission and the objective of DFM are to create a fair, transparent and efficient liquid market for smooth trading purposes. It helps in forehanded various investment opportunities by dint of optimum utilization of resources. The management of DFM provides opportunities for investment purposes in securities markets which would serve for the outdo interest of the Dubai economy. It also helps in facilitating liquidation of funds invested in securities markets which ensures the smooth interaction between acquire and supply by developing principles of fair dealing. One of the main objectives is to arrange for transfer of self-control of securities through deposit, transfer and clearing center within an integrated system which enables fast and correct transfer of ownership of shares. Operations of DFM DFM was initially operated by the government of UAE however, in the year 2006 DFM had turned into a public joint stock company through an Initial Public Offering (IPO) which led to sale of 20 percent of the shares to the public and the remaining 80 percent were subscribed by Bourse Dubai. Figure 2 Organizational pecking order of DFM (Source Dubai Financial Market, 2013c) Registrar of Listed Public Shareholding Company The registrar of the issuer company are an essential element of the securities market and the first necessary step for the investor is to submit the

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