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Qatar Exchange today launched an ambitious 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. QE has provided all banks with forms, which will be required to be filled out by investors to include their bank account information.
In a press conference held at QE today, the CEO, Mr. Andre Went stated that this 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 checks and then go to their banks to deposit these checks as is the situation today. “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.
Making clear that the investors will not pay any fees or charges for taking advantage of this service, Mr. Went thanked all Qatari banks for declaring their readiness to facilitate this process in a timely and efficient manner.
Presenting the whole process, Mr. Rashid Bin Ali Al-Mansoori, Deputy CEO of Qatar Exchange, clarified that the investors' dividends paid by the shareholding companies will be electronically transferred to their bank account upon dividends distribution. He pointed out that all that investors have to do is to visit their banks and fill in the form available at the customer service staff to include account number and signature, so the bank can verify and stamp the forms and deliver them to QE's Central Registration Department.
Mr. Al Mansoori added that the CRD at QE will then enter the bank accounts’ 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.
Mr. Al Mansoori said that the investor needs to show his personal ID card to his bank upon filling out and signing the form submitted by Qatar Exchange, noting that the investor must select one bank account where all his dividends will be deposited.
Mr. Al-Mansoori invited the investors residing in the State of Qatar not to hesitate and take this opportunity in order to receive their dividends for the current year through their bank accounts, underlining that this procedure will become compulsory after the expected finalization of the legal and regulatory procedures before the end of the year.
In response to a question about the investors residing outside the State of Qatar, Mr. 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 finalized 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.
In response to another question about the minors who do not have bank account numbers, Mr. Al-Mansoori stated 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. He added that 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, Mr. Al Mansoori stated 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.
Opening Speech by, Mr. Andre Went, CEO of Qatar Exchange
Direct Dividend Payment Plan - PowerPoint
