Qatar Stock Exchange (QSE) has reminded investors of the recent QFMA mechanism approved by Qatar Financial Markets Authority (QFMA) with regards the mechanism to not suspend trading of the shares of the companies listed on QSE on AGM days as of January 1st, 2018.
The QFMA approval included a set of procedures to be followed in implementing the decision in terms of identifying the shareholders eligible to attend the general assembly meeting and the shareholders entitled to bonus shares as well as the date of payment.
The procedures indicated that an investor shall be considered a shareholder from the date of purchase without waiting for the settlement period, whereas the selling shareholder has no right to attend the meeting or receive cash dividends and bonus shares if they make the sale before the AGM day without waiting for the settlement period.
It is noteworthy that the new mechanism is consistent with the best practices in the international financial markets and offers various investment advantages as it allows investors to trade during general assembly meetings instead of suspend trading during such events, which would be in favor of boosting liquidity in the market.
This mechanism will also be helpful to ease the successful launching of new tradable products. In general, the non-halting of trading during general assembly meetings will be very supportive of both the investors and listed companies and the securities market as well.