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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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General Module (GEN) [VER44/07-19]
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GEN A2.1.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

Past version: effective from Sep 1 2005 - Jan 3 2009.
To view other versions open the versions tab on the right.

To view past versions of this module in PDF format, please visit the Archive.

An InvestmentG means:

Shares

(a) a share or stock in the share capital of any Body CorporateG (wherever incorporated) or any unincorporated body but excluding a UnitG in a Collective Investment FundG ;

Debentures

(b) a debenture or other instrument creating or acknowledging indebtedness, including but not limited to:
(i) a debenture;
(ii) debenture stock;
(iii) loan stock;
(iv) a bond; or
(v) a certificate of deposit;
but excluding:
(vi) an instrument creating or acknowledging indebtedness for, or for money borrowed to defray, the consideration payable under a contract for the supply of goods or services;
(vii) a cheque or other bill of exchange, a banker's draft or a letter of credit (but not a bill of exchange accepted by a banker);
(viii) a banknote, a statement showing a balance on a bank account, or a lease or other disposition of property; and
(ix) a Contract of InsuranceG ;

Warrants

(c) a warrant or other instrument entitling the holder to subscribe for any investment of the kind specified by (a) or (b);

Certificates

(d) a certificate, receipt or other instrument which confers contractual or property rights (other than rights of the type described in (e)):
(i) in respect of any investment of the kind specified by (a), (b) or (c), being an investment held by a PersonG (the first PersonG ) other than the PersonG on whom the rights are conferred by the certificate, receipt or instrument (the second PersonG ); and
(ii) the transfer of which may be effected without the consent of that second PersonG ;

Options

(e) an option to acquire or dispose of:
(i) a SecurityG or contractually based investment;
(ii) currency of any country or territory;
(iii) commodities of any kind; or
(iv) an option to acquire or dispose of an investment of the kind specified by this paragraph by virtue of (a), (b) or (c);

Units

(f) a unit in or a share in a Collective Investment FundG ;

Futures

(g) rights under a future or other contract:
(i) for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made, but excluding rights under any contract which is made for commercial purposes and which is not subject to the rules of a regulated exchange; or
(ii) where the value of the contract is ultimately determined by reference, wholly or in part, to fluctuations in:
(A) the value or price of property of any description; or
(B) an index, interest rate, exchange rate or other factor designated for that purpose in the contract; and
which is wholly settled by cash or set-off between the parties but excluding rights under:
(C) a contract where one or more of the parties takes delivery of any property to which the contract relates;
(D) a contract under which money is received by way of deposit on terms that any return to be paid on the sum deposited will be calculated by reference to an index, interest rate, exchange rate or other factor; or
(E) a Contract of InsuranceG ; or

Rights and Interests

(h) any right to or interest in anything which is specified by any of (a)–(g).

Designated Investment

(i) rights under any contract where:
(i) the value of the contract is ultimately determined by reference, wholly or in part, to fluctuations in an index of SharesG ;
(ii) the index referred to is acceptable to the DFSAG ;
(iii) the contract is wholly settled by cash or set-off between the parties but excludes rights under:
(A) a contract where one or more of the parties will or may take delivery of any property to which the contract relates;
(B) a contract under which money is received by way of deposit on terms that any return to be paid on the sum deposited will be calculated by reference to an index, interest rate, exchange rate or other factor; or
(C) a Contract of InsuranceG
(iv) the rights under the contract are such as to ensure that the profit or loss of either party is proportioned directly to the fluctuations in question, and not leveraged upon them; and
(v) the holder of the rights under the contract is not exposed to contingent liabilities with any counterparty.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Added][VER5/09-05]