What is the Investor Number (IN) and how is it used?
The Investor Number (IN) is a unique number given to you as an investor. It identifies your account at the Clearing and Depository System (CDS), which holds all investor shares. The IN will be used to transfer shares to and from your account each time you buy or sell shares. When you open an account with a broker you will have to give your IN so that future transactions in your account can automatically be settled immediately after the trade is done.
What are the most important commitments of a listed company to promote disclosure & transparency?
Providing the Market with financial data and notifying it of any important events or developments which may affect the price of the security are considered the most important.
Is the date of purchasing of any significance when buying shares of a listed company?
Yes, because purchasing at the right time before the convening of the company’s General Assembly, for example, would enable you to participate in distribution of profits in accordance with the company’s Articles of Association.
What are the reasons for prohibiting companies’ directors and staff from dealing at certain times and allowing them at other times?
The aim is to ensure fare trading for all investors and provision of financial data on all listed companies. Allowing these insiders, who have access to information which are not available to the public to trade would lead to “Insider Trading”. These are transactions carried out on basis of information which are normally available to the company’s directors and staff and are not accessible to the public. Accordingly, these insiders stand to make unlawful profits, and we seek to ward off these insiders from violating rules and regulations on the one hand, and urge companies to make such information available to the public on the other in order to ensure fairness for all.
How would I know that the company allows non-UAE nationals to hold its shares , or the ratio of its shares that may be held by non-national individuals and companies?
These information mat be obtained from the Companies Listing Division or by reference to the listed company’s Articles of Association.