Dubai Financial Market Essay Example | Topics and Well Written Essays - 1750 words

Dubai Financial Market - Essay ExampleDubai Financial Market (DFM) is one of the few stock exchanges of UAE which was established as a public asylum on March 26, 2000 (Dubai Financial Market, 2013a). It has its own independent body which was formed as a result of a resolution passed by the Ministry of Economy (MOE) scrap 14 2000 (Dubai Financial Market, 2013a). It operates as secondary market responsible for trading of securities, bonds, units of coronation fund, any other financial instrument which is issued by the public articulatio stock companies, Federal government or any other local government & public institutions of the country. DFM was established as a joint stock caller-out with a paid up capital 8 billion Dirham with a par value of 1.6 per share. The first IPO by DFM had resulted in more than than 8 billion Dirham. The main objective of DFM is to make it a world class market place and provide the stakeholders with innovative facilities in trading, settlement, deposit ary of securities and clearing in an efficient method. Some of the important market values of DFM are efficiency, transparency, innovation, confidentiality and integrity. The existence of a strong investment market in UAE has attracted several potential investors and is considered as one of the most potential investment hubs of the world. As per a survey conducted by the Economic Department of Dubai 28 percent of the surveyed respondents had claimed Dubai to the most lucrative investment destinations of the world (DED, 2012).Mission and Objectives of DFMThe mission and the objective of DFM are to create a fair, transparent and efficient liquid market for smooth trading purposes. It helps in presbyopic various investment opportunities by dint of optimum utilization of resources. The management of DFM provides opportunities for investment purposes in securities markets which would serve for the best interest of the Dubai economy. It also helps in facilitating liquidation of pecuni ary resource invested in securities markets which ensures the smooth interaction between demand and supply by developing principles of fair dealing. One of the main objectives is to arrange for transfer of ownership of securities through deposit, transfer and clearing center within an integrated system which enables fast and correct transfer of ownership of shares. Operations of DFM DFM was initially operated by the government of UAE however, in the year 2006 DFM had turned into a public joint stock company through an Initial Public Offering (IPO) which led to sale of 20 percent of the shares to the public and the remaining 80 percent were subscribed by Bourse Dubai. Figure 2 Organizational Hierarchy of DFM (Source Dubai Financial Market, 2013c) Registrar of Listed Public Shareholding Company The fipple flute of the issuer company are an essential element of the securities market and the first necessary step for the investor is to submit the