Arab News, 19 November 2023: Qatar’s Financial Markets Authority has announced it has issued new dividend distribution rules.
They will come into force in 2024 and are aimed at boosting financial sector activity and increasing liquidity volume.
The rules will include substantial changes to the mechanisms of annual dividends distribution to shareholders in public shareholding companies listed on the Qatar Stock Exchange.
They will also control any interim dividend distributions companies want to distribute.
Under the rules, Qatar Stock Exchange-listed public shareholding will be allowed to engage in dividend distribution on an interim basis every three or six months or annually as they can currently. The companies will also have to distribute dividends within a certain period, which would not be exceeded.
However, public shareholding companies will no longer be allowed to distribute dividends and bonus shares to shareholders.
This role will be performed by the Securities Depository Centre Co or Edaa instead.
They will make dividend distribution to shareholders on behalf of public shareholding companies.
The aim is to facilitate distribution procedures and make them easier, protect shareholders’ dividends with a reliable party, unify the procedures and party of distribution and accelerate the process of distribution and delivery to beneficiaries.
Also reported in Raya on 19 November 2023. For the full story, click here.
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