Dubai: Dubai Financial Market (DFM) signed an agreement with Bahrain Bourse (BHB) to introduce an electronic system to enable investors to transfer their shares easily and quickly.
The MoU creates the general framework that defines the guidelines of the transfer process and administers the relationship between both sides as well as explaining their capacities, the DFM said in a statement.
It has been agreed to introduce the new electronic system during the second half of 2015, enabling swift share transfers to be executed during the official working hours of the exchanges. The system will not require any official correspondence regarding share transfer, validation and endorsement.
“We are confident that the new arrangement will further strengthen DFM’s leading position as the market of choice for GCC- based companies looking for dual listing abroad,” said Eisa Kazim, chairman of DFM.
DFM listed securities currently include three Bahraini companies: Gulf Finance House, Al Salam Bahrain Bank, and Arab Insurance Group-ARIG. A total of 4.7 billion shares in those companies have been transferred to DFM.
Currently, about Dh35 billion of shares of Bahraini companies traded on DFM so far this year, representing 10 per cent of total trade value.
