DOHA: Qatar Exchange, the Qatari bourse, yesterday launched an initiative aiming at allowing investors to have their dividends directly deposited in their bank accounts.
The purpose of this initiative, which comes in line with the best international practices, is to help develop the Qatari financial market and protect investors' rights.
To this effect, investors will be requested to visit their bank to provide the necessary instructions to ensure getting the dividends through their bank accounts.
The QE has provided all banks with forms, which will be required to be filled out by investors to include their bank account information.
The bourse's CEO, Andre Went told reporters at a news briefing yesterday that the initiative intends to serve investors by ensuring the payment of their dividends in a fast, safe and easy manner without being compelled to collect their dividends checques and then go to their banks to deposit them.
"This initiative goes in line with the best international practices; it addresses the complaints received regularly from investors regarding the current payment process", he added.
Investors will not have to pay any charges for taking advantage of this service, Went said adding that all Qatari banks were ready to facilitate this process.
Rashid Al Mansoori, Deputy CEO of QE, said that the investors' dividends paid by the shareholding companies will be electronically transferred to their bank account upon distribution.
All investors have to do is to visit their banks and fill in the form available at the customer service to include account number and signature, so the bank can verify and stamp the forms and deliver them to QE's Central Registration Department (CRD).
The CRD at QE will then enter the bank account numbers in the shareholders' records and include those numbers in the statements sent to the shareholding companies in order to transfer the due dividends to the investors' bank accounts at the end of each year.
An investor needs to produce his ID card to his bank upon filling out and signing the form submitted by the QE. An investor must select one bank account where all his dividends will be deposited.
Replying to a question about investors residing outside Qatar, Al Mansoori said "the procedure, in the first phase, will be mandatory for the Qataris and residents in the state of Qatar once the legal and regulatory procedures are finalised as expected before the end of the year, while it will be gradually applied afterwards on investors from GCC countries and the foreign investors in general".
About minors who do not have bank account numbers, Al Mansoori said that all banks have expressed their willingness to open accounts for the minors, adding that their guardians need to visit the bank, open an account in the minor's name, fill out the required forms and sign them on behalf of the minor.
The guardians are eventually entitled to have access to those accounts in accordance with the prevailing laws and regulations.
As to the possibility of using the NIN modifications forms available on QE's website for adding the shareholder's bank account number, Al Mansoori said that the investor may print the form, fill out the required information and then submit it to his bank in order for the bank staff to stamp it and return it to the Central Registration Department at QE.
© The Peninsula 2011
