How to buy and sell shares

The most common way to purchase stocks or shares is through a stock brokerage firm. In the regional markets, all investors need to initially obtain an Investor Number (IN). This is a personal, unique number that identifies him / her within the exchange systems.

To obtain an IN, individual investors (or the broker on his behalf) need to furnish a family book, which is now the Emirates ID card, and a passport. Institutional investors need to furnish the Certificate of Commercial Registration, Trading Licence and Chamber of Commerce Licence.

For UAE nationals, the IN is formulated around the family number that is obtained from the individual's family book.

Non-UAE nationals are required to fill in and submit an investor data entry form. The signature must be validated by a bank or a licensed broker. The next important documents are copies of valid passport, residence visa and power of attorney, which should not be more than three years old. If the power of attorney exceeds three years, it should be approved by the market.

After obtaining the IN, the broker may open an account for the investor. Non-UAE nationals can trade at DFM after providing the relevant documents. If a group of individuals decide to hold shares jointly, the broking firm can set up a joint account for them and shares bought for that account will be owned by the group.

For trading their securities, investors must first lodge them at the exchange so that they can be "dematerialised" or converted into electronic form. Investors have the option of lodging their stocks for dematerialisation either directly with the registrar or through their broker.

Having done this, the record of their holdings will be entered into the exchange systems. The physical share certificates will no longer be valid. At this stage the shares cannot be traded.

Before trading commences, the shares must be transferred to a broker's account in the name of the same investor. Investors need to deposit stock into their ADSM accounts and may transfer stock to their account with a broker at any time, but they must necessarily do so before they can sell the stock.