The Council of Ministers, headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, has approved a decision to trade the shares of cooperatives in the financial markets. The country aims to improve the regulatory environment for the co-operative sector and enhance its competitiveness in line with state trends.
The resolution aims to improve the regulatory and oversight process for trading shares in the country’s capital markets and to create new opportunities for improvement and growth in the trading of cooperative stocks offered by the country’s financial markets on the basis of transparency. , Flexibility and speed of processes.
Giving financial markets the power to establish specialized sites for listing, trading and transferring shares of co-operative societies
The resolution supports the full protection of the rights of shareholders, ensures the best business practices of the cooperatives, and allows them to work, expand, diversify, stimulate the growth of the cooperatives and give them more space. Cooperative work serves as a model parallel to the concept of traditional business activities and at the same time as an important tributary to the growth of the economy and the prosperity of the community.
As a result, financial markets are allowed to establish specialized platforms for registering, trading, and transferring shares of cooperative societies so that they are independent of the subscription and public trading platforms in the market, which provides an opportunity. The shareholders of the Cooperatives are required to trade the shares under the supervision of the regulatory and supervisory authorities, as well as to determine the actual price of the stock with full transparency and to abstain from any irregular trading on the basis of supply and demand factors, increasing the confidence of the shareholders. .
It decides to give financial markets the power to set and introduce defined terms, conditions and restrictions on all procedures, standards, requirements, models and procedures related to registration, trading, grievances and other matters in order to contribute to the protection of shareholders. Ensuring rights and the foundation of a fair investment for them.
Develop mechanisms to determine the value of shares, maintain shareholder rights, and purchase and transfer ownership
When listing and trading cooperative stocks, the financial markets play the role of registrar, having the task of maintaining a record showing the membership of the cooperative shareholders, the number of shares and related details. Profits and other references related to registration and trading.
This is the first time in the region that it has allowed cooperative stocks to be traded and listed on the country’s financial markets, marking a new and improved hub for regulating the cooperative sector and increasing economic returns on cooperative activities. At the same time achieving broader benefits to shareholders in terms of protecting rights and enforcing business practices, ensuring proper trading practices and their simplicity and reliability. (Left)
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