Former Market Functioning Regulations

CMA Decision No. 3/R of 2001 · UAE Federal

Official title
Authority’s Board of Directors’ Resolution No. (3/R) of 2001 Concerning The Regulations as to the Functioning of the Market
Arabic title
قرار مجلس إدارة الهيئة رقم (3/ر) لسنة 2001 في شأن النظام الخاص بعمل السوق
Instrument
CMA Decision No. 3/R of 2001
Issued by
Board of Directors of the Capital Market Authority
Jurisdiction
UAE Federal
Dates
issued 29 April 2001 · in force 29 April 2001
Status
superseded
Amended by
Decision No. 35/R of 2008; Decision No. 1 of 2015; Decision No. 16/Chairman of 2023; Decision No. 20/Chairman of 2023
Topics
Capital markets
Official source
legislation.uaecma.gov.ae · official text (PDF)
Full text
English official text — 41 articles, 3,655 words, from the official text
Verified
31 October 2026
Print

Board regulations on the functioning of the market, now listed by the CMA among superseded regulations.

Summary

Decision No. 3/R of 2001 contained the Authority's regulations on the functioning of the UAE securities markets: how a market is licensed and run, who must be a member, how brokers are admitted and disciplined, how securities are admitted, and how trading, investor numbering and settlement work. It was issued on 29 April 2001 and took effect on publication in the Official Gazette (Article 41). It was amended by Decision No. 35/R of 2008 (arbitration), Decision No. 1 of 2015 (investor numbers) and, in 2023, by Decisions No. 16/Chairman (omnibus accounts) and No. 20/Chairman (registration of market approvals, effective 1 April 2023). The CMA now lists it among superseded regulations, so it should not be relied on as the current rule.

Its main provisions were: no market could operate without an Authority licence (Article 2); market transactions in listed securities were void unless recorded (Article 7), and market records were evidence of trades and ownership (Article 8). Entities approved by a market to provide services had to register that approval with the Authority within five working days, on pain of a warning or a fine of up to AED 100,000 (Article 9 bis). Membership was compulsory for licensed brokers and listed issuers (Article 13). Brokers needed an Authority licence before a market could admit them (Articles 19 and 20) and faced market penalties of up to AED 100,000, guarantee calls or a week's suspension, with appeal within 30 days (Article 24). The market could refuse a listing even after Authority consent (Article 26). Each investor received a unique investor number linked to a bank account for dividends (Article 35), and settlement was delivery against payment no later than the second working day after the trade (Article 36).

Who it applies to

Historically: licensed UAE securities markets, their boards and management, brokers and broker representatives, listed companies and issuers, entities approved by markets to provide services, and investors trading on the markets.

Contents

English official text in 41 articles. Open the full text or jump to a provision:

  1. Article 1
  2. Article 2
  3. Article 3
  4. Article 4
  5. Article 5
  6. Article 6
  7. Article 7
  8. Article 8
  9. Article 9 — [2]
  10. Article 10
  11. Article 11
  12. Article 12
  13. Article 13
  14. Article 14
  15. Article 15
  16. Article 16
  17. Article 17
  18. Article 18
  19. Article 19
  20. Article 20
  21. Article 21
  22. Article 22
  23. Article 23
  24. Article 24
  25. Article 25
  26. Article 26
  27. Article 27
  28. Article 28
  29. Article 29
  30. Article 30
  31. Article 31
  32. Article 32
  33. Article 33
  34. Article 34
  35. Article 35 — [4]
  36. Article 36
  37. Article 37
  38. Article 38
  39. Article 39
  40. Article 40
  41. Article 41

Key provisions

Article 7All transactions in listed securities had to be entered in the market's records; unrecorded transactions were null and void.
Article 9 bisAdded in 2023: entities approved by a market had to register, renew and cancel that approval with the Authority within five working days, on pain of a warning or a fine up to AED 100,000.
Article 13Market membership was compulsory for licensed brokers, joint stock companies with listed securities and any other entity with listed securities.
Article 24Market board penalties on brokers: warning, fine up to AED 100,000, guarantee encashment or one-week suspension, with recommendation of removal; appeal within 30 days.
Article 35Each investor was assigned a unique investor number and dividend bank account before trading, and one trading account per broker; joint accounts allowed since 2023.
Article 36Clearing and settlement on delivery against payment, completed no later than the end of the second working day after the trade.

Penalties

Article 9 bis allowed a warning or a fine of up to AED 100,000 for failing to register, renew or cancel a market approval with the Authority. Under Article 24 a market board could warn a broker, fine it up to AED 100,000, call its bank guarantee or suspend it for up to one week.

In practice — how Polaris handles it

This regulation still explains features our clients meet when they invest through UAE markets, such as the investor number, the dividend account declaration and the T+2 settlement cycle, and it appears in older brokerage and custody agreements. Because the CMA now lists it as superseded, we check the market's current rulebook and the CMA's current regulations before relying on any of its provisions, and coordinate with the client's licensed broker.

History and citations

Amended byDecision No. 35/R of 2008; Decision No. 1 of 2015; Decision No. 16/Chairman of 2023; Decision No. 20/Chairman of 2023
CitesFormer SCA Law

“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.

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Related Polaris services

Source and verification. This record was written from the official text published at legislation.uaecma.gov.ae, read on 31 October 2026. Quoted from that text: “No Market shall be permitted to conduct the activity of Trading in the State unless licensed by the Authority.”
Published for general information by Polaris Corporate Services FZ-LLC, a licensed Trust and Corporate Service Provider. It is not legal advice and does not replace the official text, which prevails in case of difference. Arabic is the authoritative language of UAE federal and emirate legislation; English translations are provided by the issuing authorities. Instruments change: check the status and the official source before relying on this page.

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