DOHA: Qatar’s financial markets regulator that supervises the stock exchange has approved a proposal to reduce the face value of listed shares to QR1 from QR10. The idea is to help increase liquidity, investor base and the share turnover ratio and attract a new genre of investors, according to a report of Qatar Financial Markets Authority (QFMA) for 2013.
The report says QFMA would take steps with the parties concerned to implement the decision.
According to sources, the QFMA board approving the proposal does not mean the nominal value of shares listed on Qatar Exchange (QE), the Qatari bourse, would be reduced to QR1 from QR10.
The corporate law needs to be amended to implement the move and for the amendment, QFMA is required to approach the Ministry of Economy and Commerce for approval. The Peninsula
The ministry, based on its perception and studies, can accept or reject the proposal, sources told this newspaper.
“It is not necessary that if QFMA approves a proposal regarding the stock exchange, it is to be mandatorily accepted and enforced,” said a source.
Qatar News Agency quoted QFMA Board Chairman
H E Sheikh Abdullah bin Saoud Al Thani as saying in the report that 2013 saw the culmination of efforts by regulatory bodies in the local financial sector to transform the country into a regional hub capable of attracting foreign funds and technology and promoting local investments.
Approving the proposal to reduce the face value of listed shares was among several measures and decisions QFMA took last year, the report said.
The Peninsula
