Dubai - Mubasher: The Dubai Financial Market (DFM) on Monday announced the issuance of two new regulations that lay the foundations for market participants to implement both repurchase agreements (Repo) and Islamic Murabaha transactions.
The implementation of the new regulations is pending the approval of the Securities and Commodities Authority (SCA), according to the DFM.
The regulations were drafted under the international best practices, and in collaboration with many participants on the market, the Dubai-based stock market added.
Under the new regulations, investors can use both mechanisms to “transfer their DFM-listed securities as part of a Repo transaction or an Islamic Murabaha transaction with Shariah compliant financial institutions,” the DFM stated.
“We are delighted to introduce these two new mechanism to our market participants in line with DFM’s strategy 2021 to further diversify market products and services, enabling them to create more value from their DFM listed securities,” said Essa Kazim, the DFM’s chairman.
“DFM investors can now structure a Repo agreement and sell their securities for cash to a financial institution with a future commitment to re-purchase the securities,” Maryam Fekri, the DFM’s Chief Operations Officer, commented.
