ID :
115643
Thu, 04/08/2010 - 15:59
Auther :
Shortlink :
https://oananews.org//node/115643
The shortlink copeid
NBAD first to acquire "Securities Custody" license
Abu Dhabi, April 8, 2010 (WAM)- The Emirates Securities and Commodities Authority (SCA) has granted the National Bank of Abu Dhabi (NBAD) a license to practice the "Securities Custody" activities of securities listed on local markets, making the bank the first to achieve this feat.
The granting of the license followed the NBAD's meeting of all prerequisites as outlined in SCA Board Resolution No. (29/R) of 2009 concerning regulations securities custody. It is also in line with the SCA's efforts to further improve efficiency of the country's capital market by innovating new financial services on its markets in accordance with the best international practices and to meet the growing demands of investors.
According to the "Securities Custody" transaction, an investor may entrust his securities in the custody of a specialised company or bank licensed for that activities. The securities are then kept by the bank or company in the form of book interest in the name of the investor, who may mandate the custodian to act appropriately on the securities, for example, by referring them to a broker when the owner wants them sold. The investor may also mandate the custodian to receive on his behalf dividends when they are being distributed. The Custodian may also represent the investor in other activities like subscription of IPO, attending general assembly meetings and voting on his behalf but according to the investor's instructions.
The granting of the license followed the NBAD's meeting of all prerequisites as outlined in SCA Board Resolution No. (29/R) of 2009 concerning regulations securities custody. It is also in line with the SCA's efforts to further improve efficiency of the country's capital market by innovating new financial services on its markets in accordance with the best international practices and to meet the growing demands of investors.
According to the "Securities Custody" transaction, an investor may entrust his securities in the custody of a specialised company or bank licensed for that activities. The securities are then kept by the bank or company in the form of book interest in the name of the investor, who may mandate the custodian to act appropriately on the securities, for example, by referring them to a broker when the owner wants them sold. The investor may also mandate the custodian to receive on his behalf dividends when they are being distributed. The Custodian may also represent the investor in other activities like subscription of IPO, attending general assembly meetings and voting on his behalf but according to the investor's instructions.
