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  • Why do people invest in the stock market? What is the benefit from investing?
    • Investment is a way of sharing in the success of companies. By investing in a company, the investor is seeking a return on their investment either through an increased share price or through dividend payments, or both.
  • Why invest in the UAE Financial Markets?
    • The UAE financial markets have seen tremendous growth in the recent past. This is a reflection of the very healthy local economy, the high oil price, and the solid fundamentals of many local companies.
  • Who can open an account?
    • For individuals account, any one who is at least 21 years old is eligible to open an account. If the age is less than 21, he or she must have a guardian. Moreover, companies can also open an account.
  • How to open an account?
    • Apply for Investor Number (NIN) in DFM & ADSM.
    • Apply to open a new account with Merchant Securities by filling the account opening form.
    • Receive your Merchant Securities account number from our customer services.
      The following documents are required to an open account:
    • For Individuals:
      1. For UAE nationals: A copy of a valid passport and family registration.
      2. For non-UAE nationals: A copy of valid passport and government issued ID (ex: Driving License, Social Insurance Card if available).
      3. For a sole proprietor: copies of Trade License and Registration Certificate.
      4. For a representative (agent): A copy of a power of attorney authenticated by a notary public and a copy of the representative's            passport.
      5. Minor investors (under 21) whose guardians are not their fathers should attach custody documents authenticated by a notary public in addition to copy of the guardian passport.
      6. For joint account holders: the above documents are required for each person in the account.
    • For Corporate :
      1. A copy of trade license and registration certificate (authenticated by UAE embassy and country's Ministry of Foreign Affairs for non-UAE licensed companies).
      2. A copy of a power of attorney of the company's representative, authenticated by a notary public in addition to a copy of the representative's passport.
      3. List of Board of Directors and Partners.
  • How do I know that my account is opened?
    • Our customer service executive will inform you.
  • What is an Investor Number (NIN)?
    • The Investor Number (IN) is a unique number given to you as an investor. It identifies your account at the Clearing and Depository Settlement Department (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.
    • To get an Investor Number:
      The investors data entry application must be filled and duly authenticated. The following supporting documents must be attached (the investor may be replaced by an attorney or custodian).
    • If the investor is an individual:
      o The investor data entry form must be filled.
      o The original share certificates (optional).
      o Copy of a valid passport.
      o Copy of the civil record summary (locals only).
      o Certified copy of the court judgment if there is a custodian other than the father of a minor investor (less than 21 years old).
      o If there is an attorney, a copy of the following must be attached: a valid power of attorney certified by a notary public with duration of   not more than three years or a power of attorney issued by Dubai Financial Market.
      o Investor signature form completed by the investor/the guardian
    • If the investor is a joint account:
      o The investor data entry form must be filled for each person separately.
      o The joint account data entry form must be filled. It must show how the name is written in the joint account
      o Copy of the valid passports of both parties
      o Summary of the civil record of both parties (for citizens)
      o Letter from both parties directed to Dubai Financial Market authorizing one or both parties to sign the market transactions and to trade
    • If the investor is an institution:
      o Fill the investor data entry form
      o Copy of passport
      o Copy of summary civil record
      o Copy of commercial license
      o Copy of commercial registration
      o Letter of undertaking by the investor stating that no investor number will be opened in his personal name. The proprietor (owner) of the institution must choose between obtaining an investor number in the name of his institution or in his personal name. The Market procedures prohibit having more than one investor number per person.
      o Investor Signature form completed by the company’s representative.
      Merging an account of a private enterprise with the personal account. In accordance with the companies law and the procedures of Dubai Financial Market, no one individual may own securities in joint stock companies in his personal name in addition to his private enterprise. Therefore, securities may not be registered at the same time in the name of a private enterprise and the proprietor of the enterprise. No investor data entry application will be accepted for private enterprises while the proprietor of the enterprise exists in Dubai Financial Market. The investor chooses one of the two accounts: account of the private enterprise or his personal account. Absolutely both accounts cannot be together.
    • If the investor is a company:
      o Fill the investor data entry form
      o Certificates of ownership of securities (optional)
      o Copy of a valid commercial license
      o Copy of a valid commercial registration
      o Articles of association of the company
      o List of names of partners of the company
      o Authorization by the company to sign with a duly authorized signature
      o If there is an attorney, a copy of a valid power of attorney authenticated by a notary public (having duration of not more than three years) or a power of attorney issued by Dubai Financial Market.
      o If a portfolio (Fund) account is opened, a letter from the central bank for the portfolios approval must be attached.
  • What is the commission schedule?
    • Less than 20,000 AED, Commission will be 75 AED Per transaction.
    • More than 20,000 AED, approx. the following commission.
    • Orders

      Due fees

      Detail of fees

      Serial

      AED 10

      Fees to be collected by the market  from both the seller and the buyer on each order executed  in  one  trading session

      1

        

      Trading - Shares

      Due fees

      Detail of fees

      Serial

      0.00275

       

       

      Total trading commission payable by the buyer and the seller on the total value of the order executed  

      1

      0.0015

      Minimum AED 30

      broker's commission

      a

      0.0005

      Minimum AED 20

      Dubai Financial market commission

      b

      0.0005

      Minimum AED 10

      Clearing's  (CDS) commission  

      c

      0.00025

      Minimum AED 5

      Securities and Commodities Authority commission

      ESCA

      d

       
  • What should I do when I face difficulties using the Online Trading?
    • Please feel free to contact IT department.
  • How can I transfer stock to Merchant Securities?
    • After opening account with Merchant Securities, you will have to fill up the Transfer of securities between brokers form and sign it. After two working days, shares will be transferred.
  • How can I withdraw money from my account?
    • You will have to inform Operations department to request for Cash, chaque or bank transfer in to your account.
  • What to do, if forget password?
    • You will have to contact IT department. You must have your user name and Merchant Securities account number.
  • How to check my Statement and number of shares?
    • You can call to customer service or operations to get your statements and number of shares, Moreover, if you have online account you just click on portfolio and statement.
  • Is there a minimum amount that should be kept in my account?
    • No
  • What are the minimum value/ balance for opening an account?
    • No
  • If I did not use my account for some time, would it be deactivated?
    • No
  • What is the procedure for granting a power of attorney letter?
    • A power of attorney letter could be granted by filling in the authorization letter form from Dubai Financial Market and getting in the authorization letter from court.
  • What is CDS?
    • Generating an Investor Number (NIN) for new investors.
    • Creating a CDS account for new investors.
    • Holding securities in the investor’s CDS account for investors who do not want to trade in such securities.
    • Issuing statement of account at investor's request.
    • Transferring securities ownership immediately from the seller’s to the buyer’s account.
    • Issuing a letter of securities ownership at investor's request.
    • Producing and sending weekly statements of account to investors where accounts had changes during the week.
    • Issuing DFM authorized “Power of Attorney” relating to DFM listed securities to facilitate the work of investors’ representatives.
    • Updating investor details such as name and address at investor's request.
    • Transferring investor securities between CDS and brokers at investor's request.
    • Transferring investor securities from one broker to another at investor's request.
    • Transferring securities ownership from one investor to another as a result of family, inheritance, and court order transfers.
    • Providing investors with data and information they require.
    • Pledging securities in favor of the pledgee bank after receiving a request to pledge securities.
    • Providing issuers of listed securities and their registrars with the data, information and statistics they require.
    • Replying to investors’ inquiries.
  • How to deposit the money to my account?
    • Deposit the money (in UAE Dirham) in Merchant Securities L.L.C Account .

      Account No.

      Bank Name

      0151871010

      NATIONAL BANK OF DUBAI

      0157364000

      NATIONAL BANK OF ABU DHABI

      12520114975001

      DUBAI ISLAMIC BANK

      send the receipt with the application to Fax: (+9714)3211122.

 



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