Qatar: New brokerage law for banks
Qatari banks have become subject to a new brokerage law which bans them to open new investor accounts starting January 1, 2006 and to cease brokerage operation by March 1, 2006. All brokerage activities will then be delegated to the two Dlala brokerage companies, namely, Dlala Brokerage Company and Dlala Islamic Brokerage Company.
According to a press statement issued by the Doha Securities Market (DSM), the market committee met on November 23 and decided to terminate the banks’ licenses brokerage services. Between January 1 and January 31, 2006, the banks will be allowed to buy and sell for their existing clientele base only. Between February 1 and February 28, 2006, all banks will be required to transfer the shares of their clients to the Central Registration Department (CRD) of the DSM.
An official source at the DSM declared that the Market Committee chaired by Sheikh Mohammed Bin Ahmad Bin Jassim Al-Thani, the Minister of Economy and Commerce, had adopted its resolution in light of the brokerage banks contribution in the establishment of “Dlala Investment and Holding Company” to commence brokerage business at the DSM.