Article 1 (Amended By Decree 26/2002) In the implementation of the provisions of the present Law, unless otherwise stated, the following words and expressions shall bear the corresponding meanings: “The Minister” means the Minister of Economy and Commerce.“The Ministry” means the Ministry of Economy and Commerce.“The Market” means the Doha Securities Market (DSM)“The Committee” means the Committee of the Market “The Manager” means the Manager of the Market.“Securities” means shares and debentures of the Qatari joint-stock companies, bonds, sukuk and promissory notes issued by the government or any of the Qatari public authorities and corporations, or any other securities instruments to be admitted for trading.“Dealing in Securities” means the transactions of selling and buying, transfer of ownership and registration of securities licensed for trading at the Market, whether these transactions are carried out directly or through a brokerage.
Article 1 (Amended By Decree 26/2002)
Establishment and Objectives of the Market
Article 2 A securities market entitled the “Doha Securities Market.”(DSM) shall be established for the regulation and supervision of trading in securities. The DSM shall have a juristic independent personality, shall have the capacity to dispose and manage property, and shall have the right to litigate. The DSM head office shall be in the City of Doha and shall be under the supervision of the Minister. Article 3
Article 2
A securities market entitled the “Doha Securities Market.”(DSM) shall be established for the regulation and supervision of trading in securities. The DSM shall have a juristic independent personality, shall have the capacity to dispose and manage property, and shall have the right to litigate. The DSM head office shall be in the City of Doha and shall be under the supervision of the Minister.
The specific objectives of the Market shall be as follows: Give opportunities for investment of savings and funds in securities to serve the national economy; Conduct studies, collect information and statistics on traded securities and publish relevant reports; Enhance communications and links with foreign financial markets as well as making use of the methods used in such markets to help developing the Market; Establish the rules of professional conduct, self-monitoring, and discipline among brokers and workers in securities as well as encouragement of qualifying new securities brokers and other professionals working in the Market, with a view of developing their scientific and practical competence.
Trading in the Market shall be confined to the securities stipulated in Article 1 herein. The Committee may license trading in other Qatari securities. Where public interest requires, securities from the States of the Gulf Cooperation Council (GCC) or other Arab or foreign States may be listed in the Market by a resolution of the Council of Ministers at the proposal of the Minister. The bylaws of the Market shall stipulate rules and provisions governing the registration and enlisting of securities.
Trading in enlisted and approved securities in the Market shall be in accordance with the terms and conditions of the Committee. Trading shall take place inside the Market Hall, and through a broker registered therewith. Where some transactions on such securities take place outside the market, such transactions shall be pursuant to the controls and standards specified in the bylaw and the instructions of the Committee.In all cases, all transactions in such securities, when transferring their ownership, shall be registered in the Market records. The company trading its securities outside the Market shall notify the Committee of such transactions in a timely manner.Dealing in the Market shall be based on prompt delivery of securities, whether buying or selling. The value thereof shall be made by immediate cash.Any transaction in securities contrary to the provisions of the Article herein shall be null and void.
Members and Securities brokers
Article 6 The Market membership shall include the following: The Central Bank of Qatar; Banks licensed to operate in the State and the specialised lending institutions; Qatari joint-stock companies which offer their shares for public subscription; Securities brokers practicing in the Market; Any natural or juristic person the Committee decides to admit as a member in the Market. Members of the Market shall undertake to pay all prescribed fees in accordance with the bylaws of the Market. Article 7
Article 6
The Market membership shall include the following: The Central Bank of Qatar; Banks licensed to operate in the State and the specialised lending institutions; Qatari joint-stock companies which offer their shares for public subscription; Securities brokers practicing in the Market; Any natural or juristic person the Committee decides to admit as a member in the Market. Members of the Market shall undertake to pay all prescribed fees in accordance with the bylaws of the Market.
Brokering in the market may only be taken for a Qatari corporation or company, a bank licensed to operate in the State or any corporation or a natural person the Committee granted approval for brokerage business. Only securities broker may conduct the following: Brokerage by commission; Brokerage by buying and selling in favour of the client's portfolio; Brokerage in underwriting of new securities; Brokerage in marketing of the new issues of securities.
In concluding deals, the securities broker must ascertain that the deals are according to the orders of his customers. He shall validate orders, ascertain the customer's ownership of the securities, and ascertain the freedom of securities from mortgage or attachment.The securities broker shall be responsible, in accordance with the provisions of this law, of any action that would create fictitious transactions, not leading to a real transfer of securities under trading. The securities brokers may have agents working under their supervision and responsibility and acting on their behalf in the brokerage business in securities-relating transactions.
The Market bylaw shall determine for the brokers and their agents the licensing conditions, type of work(s), conditions of dealings on behalf of third parties, and for the account of their own portfolio; and duties, rights and liability towards the Market Committee. The Market bylaw shall also determine the conditions under which the decision of cancellation and revocation of the licenses of brokers and their agents may be issued.
Management of the Market
Article 10 (Amended By Decree 26/2002) The management of the Market shall be taken by a Committee. TheCommittee shall be known as the Market Committee and shall include the following: Two representatives of the Ministry, one of them shall be the President; Director of the Market ………………….Member Representative of Qatar Central Bank …………..Member Representative of Qatar Chamber of Commerce and Industry …..Member Two of the securities brokers ……………………………..Members Two representatives of the Qatari joint-stock companies whose shares are traded in the Market ………………………………………….….Members Two experienced and qualified persons …………………..Members The Committee shall elect one of its members to the post of Vice President. The duration of membership of the Committee shall be three years liable for renewal for one or more similar durations. The members of the Committee shall be named by a resolution of the Council of Ministers upon the proposal of the Minister, in coordination with the concerned authorities. Article 11
Article 10 (Amended By Decree 26/2002)
The management of the Market shall be taken by a Committee. TheCommittee shall be known as the Market Committee and shall include the following: Two representatives of the Ministry, one of them shall be the President; Director of the Market ………………….Member Representative of Qatar Central Bank …………..Member Representative of Qatar Chamber of Commerce and Industry …..Member Two of the securities brokers ……………………………..Members Two representatives of the Qatari joint-stock companies whose shares are traded in the Market ………………………………………….….Members Two experienced and qualified persons …………………..Members The Committee shall elect one of its members to the post of Vice President. The duration of membership of the Committee shall be three years liable for renewal for one or more similar durations. The members of the Committee shall be named by a resolution of the Council of Ministers upon the proposal of the Minister, in coordination with the concerned authorities.
The Committee shall assume all the functions necessary for the management of the Market, in particular the Committee shall carry out following: Drawing up the general policy of the Market; Proposing the Market bylaws including; the organizational structure, personnel regulations, procurement bylaw, the financial bylaw, the fees of listing and trading and annual fees. These regulations shall be issued by a decision of the Minister; Laying down the regulatory rules and instructions of dealing in securities inside the Market and the supervision over application and trading of these securities; Taking necessary action in respect of suspicious transactions in the light of the provisions of the bylaws of the Market; Deciding on the applications for licensing the securities brokers; Temporary suspension of trading in the Market or in one security or more in case of occurrence of special circumstances risking the proper work progress and order of the Market; Approval of the annual budget estimates of the Market and the final accounts and appointment of auditors; Formation of permanent or temporary ad hoc committees from within or outside the members, for taking up and studying matters the Committee deems necessary; Ensuring development and training of qualified Qatari cadre for managing the Market in accordance with the state-of-the art administrative and technical methods, and dissemination of investor awareness among traders; Proposing draft legislative instruments necessary for the promotion of dealing in the Market and submitting such drafts to the Minister. Any other tasks for ensuring the proper work progress in the Market.
The Committee reserves the right to examine and review the records, books and all transactions of securities brokers. Also the Committee reserves the right to examine and review the work and activities of Securities Issuing Divisions in the joint stock companies members in the Market, and securities portfolios managed by any member therein. Such shareholders shall facilitate the task of examination and revision team and provide all data and information requested thereby. The information and data viewed by the revision team by virtue of their work shall be treated in total secrecy. Such information and data may not be published or information contained therein disclosed.The Committee - if the organization under inspection is a licensed bank - shall in coordination or participation with Qatar Central Bank, conduct the examination and audit, which is limited to specific issues contained in the first clause of this Article.
The Chairperson of the Committee shall submit to the Minister a detailed report every six months on the market performance, investors situations, the size of the investment made by the Market, and all the issues that contribute to the development and prosperity of the market.
The Committee shall assume the establishment of the ad hoc administrativeandtechnicalbodiesneeded toruntheworkoftheMarket.
The market shall have a manager appointed by a decision of the Minister. The manager shall implement the decisions of the Committees. The manager may propose to the Committee regulations and instructions as he deems appropriate. He shall also oversee all technical and administrative bodies of the market; and issue the necessary instructions to carry out duties thereof in accordance with the powers conferred upon him in the bylaws of the market, and under the decisions of the Committee. The manager shall represent the market before the courts, in relation to third parties, and shall have the right to sign on behalf of the market.
The Market Budget
Article 16 The market shall have a budget prepared in accordance with the rules determined by the Market bylaw. The bylaw shall determine the start and end of the fiscal year, the financial rules and procedures for the disposition of the market funds, books for the market operations and how to audit accounts thereof. Article 17
Article 16
The market shall have a budget prepared in accordance with the rules determined by the Market bylaw. The bylaw shall determine the start and end of the fiscal year, the financial rules and procedures for the disposition of the market funds, books for the market operations and how to audit accounts thereof.
The Market resources shall be made up of the following: Revenues of the services provided by the Market; The outcome of investment of funds of the Market; Outcome of the sanctions imposed in accordance with the provisions of this law; The annual membership fees; The fees imposed for the benefit of the Market; Any other revenues to be approved by the Committee
The market property shall be deemed public property subject to all provisions thereof. Collection of the prescribed or ruled fees and fines for the irregularities committed in violation of the provisions of this law and executive bylaw thereof, shall be conducted according to the rules of collecting public funds. Debt due to the market - from whatever source or object - shall be privileged debt taking priority over all other rights of creditors of the market.
Arbitration and Disciplining
Article 19 There shall be established, by a decision of the Committee, an internal Arbitration Jury headed by a judge, to be selected by the Minister of Justice based upon the proposal of the President of the judicial courts, and the membership of two selected by the Committee, one shall be non- member. The Arbitration Jury shall adjudicate in all disputes relating to transactions that take place in the Market. Trading in the market shall be deemed recognition of the acceptance of arbitration, provided that it is stipulated in the documents of such transactions. Decisions issued by the Arbitration Jury shall be binding on the parties to the conflict. The Market bylaw shall determine the procedures to be followed to report the dispute and adjudication therein. Article 20
Article 19
There shall be established, by a decision of the Committee, an internal Arbitration Jury headed by a judge, to be selected by the Minister of Justice based upon the proposal of the President of the judicial courts, and the membership of two selected by the Committee, one shall be non- member. The Arbitration Jury shall adjudicate in all disputes relating to transactions that take place in the Market. Trading in the market shall be deemed recognition of the acceptance of arbitration, provided that it is stipulated in the documents of such transactions. Decisions issued by the Arbitration Jury shall be binding on the parties to the conflict. The Market bylaw shall determine the procedures to be followed to report the dispute and adjudication therein.
The Market shall have a Disciplinary Committee to be constituted by a decision of the Committee. The Disciplinary Committee shall be competent to adjudicate in the violations by the securities brokers and companies of the provisions of this law, the Market bylaws and regulatory decisions, the good progress of the work and order and the rules and principles of the profession.The Disciplinary Committee shall be headed by a judge to be nominated by the Minister of Justice upon the recommendation of the president of the judicial court and two members of the Committee to be named by a decision of the Committee. The Disciplinary Committee may impose any of the following sanctions: Notice; Warning; Confiscate all or part of the bank guarantee as prescribed by Market bylaw; Suspend trading in the securities of a company or suspend the business of a broker for a period not exceeding four months; Cancellation of the membership of the Market.
An appeal may be filed in the Appeals Committee against a decision issued by the Disciplinary Committee suspending dealing in a company's securities or the business of a broker or cancelling the membership of a member. The Appeals Committee shall be constituted under the presidency of a judge of the Court of Appeals to be named by the Minister of Justice upon the recommendation of the president of the judicial courts- and the membership of the rest of the Market Committee who have not participated in issuing the decision against which an appeal is being filed. Five member- quorum shall be required to convene the Appeals Committee. An appeal shall be filed within fifteen days from the date of issuance of a decision if the decision is issued in presence of the party against whom it has been issued, or from the date of summoning the party against which the decision is made with the ex-parte decision if the decision is passed in absence of the applicant.
The Market bylaw shall indicate the procedurestobefollowedbyeachofthedisciplinary and grievancecommittees, andhowtoconducttheir powers, issuingdecisions, announcementand execution thereof.
Offences and Sanctions
Article 23 Without prejudice to the disciplinary penalties set forth in this law, or any more severe penalty provided for by another law, whoever commits any of the following acts shall be punished with imprisonment for a term not exceeding three months, and/or a fine not exceeding fifty thousand (50,000) riyals: Disclose confidential information entrusted to him by virtue of his work, pursuant to the provisions of this law; Deal in the market based on undisclosed and undeclared information come to his knowledge by virtue of his position, or has circulated rumors about the situation of any company, in order to influence the levels of the stock price. Intentionally and knowingly provided data, information or statements, with the aim of influencing the decisions of investors; Conducted fictitious operations in order to monopoly or exploitation of trust; Concludes agreements or conducts operations with a view to manipulating the prices of securities, and profit at the expense of investors; Violates the provisions of Articles 7, 8 of this Law.
Article 23
Without prejudice to the disciplinary penalties set forth in this law, or any more severe penalty provided for by another law, whoever commits any of the following acts shall be punished with imprisonment for a term not exceeding three months, and/or a fine not exceeding fifty thousand (50,000) riyals: Disclose confidential information entrusted to him by virtue of his work, pursuant to the provisions of this law; Deal in the market based on undisclosed and undeclared information come to his knowledge by virtue of his position, or has circulated rumors about the situation of any company, in order to influence the levels of the stock price. Intentionally and knowingly provided data, information or statements, with the aim of influencing the decisions of investors; Conducted fictitious operations in order to monopoly or exploitation of trust; Concludes agreements or conducts operations with a view to manipulating the prices of securities, and profit at the expense of investors; Violates the provisions of Articles 7, 8 of this Law.
Final Provisions
Article 24 The State public budget shall bear the expenses ofthemarketduringtheperiod ofitsestablishment, andafurtherperiodnot exceedingthree years from thedate of commencement ofitswork. The market, after this period shall be funded byself-financing sources. Article 25
Article 24
The State public budget shall bear the expenses ofthemarketduringtheperiod ofitsestablishment, andafurtherperiodnot exceedingthree years from thedate of commencement ofitswork. The market, after this period shall be funded byself-financing sources.
The bylawsof the market shall be issued within six monthsoftheeffectivedateofthislaw. Until such time the bylaw is issued, the Minister shall, assume, based ontheCommittee proposal, the issue of thetemporaryrules and decisionsnecessary forthe functioning of themarket.
All competent authorities, each within its respective jurisdiction, shall implement this law, which shall be published in the Official Gazette.