Nasdaq Dubai CSD for Private Companies
Nasdaq Dubai’s CSD facility accomodates privately held companies that wish to make use of the exchange’s sophisticated infrastructure on behalf of their shareholders. It provides companies the ability to utilize the infrastructure of the exchange without having to go public.
What Is Nasdaq Dubai’s CSD?
The CSD stands for Central Securities Depository. It is where shares and other securities are held on behalf of shareholders or investors. The infrastructure of the CSD allows investors to open their individual accounts and hold their shares, bonds, units of a fund and any other security in an organised and secure manner.
For private companies, it also facilitates opportunities for investors to buy and sell the shares through brokerages that are Members of Nasdaq Dubai, including most of the UAE’s leading brokerages. Such trading takes place off-exchange, but the transfer of ownership of the shares takes place in the CSD.
All the shares of private companies are held in the CSD in exactly the same way as those of the companies that are listed on Nasdaq Dubai.
Why Use the CSD?
Nasdaq Dubai’s CSD can be seen as an introduction to the exchange, making it the start of a journey towards a capital market transaction. Whether the future plan is to issue debt through bonds or Sukuk, or to go public through an IPO, joining the CSD can give a private company the opportunity to learn more about Nasdaq Dubai and the exchange environment. It also gives shareholders the comfort that their shares are held in a secure, electronic format with a credible stock exchange.
What are the Benefits of Joining Nasdaq Dubai CSD?
The Nasdaq Dubai CSD provides private companies:
- an infrastructure for the safekeeping of the company’s shares
- efficient settlement of share transfers
- efficient processing of corporate actions
- close links with international CSDs
- global visibility through one of the world’s leading exchange brands.
Additionally, the Nasdaq Dubai CSD allows a private company to learn about the framework of an exchange and start working on aligning itself to how a public company operates, without going public. Something that will bring comfort to the Board and shareholders of the company, and credibility for itself. For shareholders, it provides the ability to hold their shares in one secure account with their broker. And should they wish to sell their shares they can use the network of brokers to assist them in finding investors.
What is the Process to Join the CSD?
The process is straightforward:
- Complete Nasdaq Dubai’s application forms and submit them to the team along with supporting documents.
- Ensure shareholders have a National Investor Number (NIN) with Nasdaq Dubai and a trading account with one of our Members.
- Once the application is approved we will coordinate with you on the movement of shares to the CSD, and that is when you become a part of Nasdaq Dubai.
Our team will work with you throughout the process to ensure a smooth transition into the CSD.
For further technical information about Nasdaq Dubai’s CSD please visit https://www.nasdaqdubai.com/solutions/solutions-overview#csd
To see how Nasdaq Dubai can help your organization through the CSD service or one of our other solutions please contact the team on firstname.lastname@example.org.