Dubai: Shareholders on the Dubai Financial Market (DFM) will now get dividend payouts using a new debit card issued by the exchange and Emirates NBD, the company announced yesterday.
The new card issued by Emirates NBD, called iVESTOR, aims to reduce the lengthy process of companies issuing several cheques and the time it takes to receive and cash them out.
30,000 cards on anvil
"Capital markets will not develop without depending on parties involved in those markets," Eisa Kazim, executive chairman of DFM, said at a press conference yesterday.
The iVESTOR card will be issued to over 30,000 investors of DFM company shareholders for the financial year 2009 cash dividend.
Investors can use the new cards for cash withdrawals from the Emirates NBD ATM network in the UAE or from any Visa or Plus ATMs worldwide as well as at Visa-accepting retail outlets in 170 countries. Cardholders will also be able to top up their balances through Emirates NBD cash deposit machines or over the counter in any of the bank's branches in the UAE.
"Cash dividend distribution was always a time-consuming process as investors have to wait for cheques to be issued and sent to them by post and then also have to deposit them in their accounts, not to mention the lost cheques and the hassle of issuing replacements. However, with this innovative solution, dividends of the DFM company will be credited instantly to the card account for immediate access," Kazim said.
The service will be initially offered to DFM company shareholders and then extended to other listed companies that appoint DFM as the dividend distribution agent.
Three categories
Introduced in three categories, Classic, Prestige and Platinum based on ownership of DFM shares, the iVESTOR card not only can be used as a normal debit card locally and internationally, but will also offer value added services in the near future, including the ability to register and vote during annual general meetings and to subscribe to initial public offerings executed through DFM.
