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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
General Module (GEN) [VER44/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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  • GEN A2.2.1

    For the purposes of GEN Rule A2.1.2:


    (a) a ShareG is a share or stock in the share capital of any Body CorporateG or any unincorporated body but excluding a UnitG ;


    (b) a DebentureG is an instrument creating or acknowledging indebtedness, whether secured or not, but excludes:
    (i) 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;
    (ii) 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);
    (iii) a banknote, a statement showing a balance on a bank account, or a lease or other disposition of property;
    (iv) a Contract of InsuranceG ; and
    (v) a Crowdfunding Loan AgreementG ;


    (c) a WarrantG is an instrument that confers on the holder a right entitling the holder to acquire an unissued ShareG , DebentureG or UnitG ;


    (d) a CertificateG is an instrument:
    (i) which confers on the holder contractual or property rights to or in respect of a ShareG , DebentureG , UnitG or WarrantG held by a PersonG ; and
    (ii) the transfer of which may be effected by the holder without the consent of that other PersonG ;
    but excludes rights under an Option;


    (e) a Unit is a unit in or a share representing the rights or interests of a UnitholderG in a FundG ; and

    Structured Products

    (f) a Structured ProductG is an instrument comprising rights under a contract where:
    (i) the gain or loss of each party to the contract is ultimately determined by reference to the fluctuations in the value or price of property of any description, an index, interest rate, exchange rate or a combination of any of these as specified for that purpose in the contract ("the underlying factor") and is not leveraged upon such fluctuations;
    (ii) the gain or loss of each party is wholly settled by cash or set-off between the parties;
    (iii) each party is not exposed to any contingent liabilities to any other counterparty;
    (iv) there is readily available public information in relation to the underlying factor;
    but excludes any rights under an instrument:
    (v) where one or more of the parties takes delivery of any property to which the contract relates;
    (vi) which is a DebentureG ; or
    (vii) which is a Contract of InsuranceG .
    Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
    [Amended] DFSA RM62/2008 (Made 4th January 2009). [VER22/01-09]
    [Amended] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]

    • GEN A2.2.1 Guidance


      1.  A DebentureG may include a bond, debenture stock, loan stock or note. Certain Islamic products ("SukukG ") structured as a debt instrument can also fall within this definition.
      2.  If the interest or financial return component on a debt instrument is to be calculated by reference to fluctuations of an external factor such as an index, exchange rate or interest rate, that does not prevent such an instrument being characterised as a DebentureG .


      A WarrantG confers on the holder an entitlement (but not an obligation) to acquire an unissued ShareG , DebentureG or UnitG , thereby distinguishing it from a call OptionG which entitles the holder, upon exercise, to acquire an already issued (i.e. existing) SecurityG .


      CertificatesG confer rights over existing SharesG , DebenturesG , UnitsG or WarrantsG held by a PersonG and include receipts, such as Global Depository ReceiptsG (i.e. GDRs).

      Structured Products

      1.  Instruments previously known as Designated InvestmentsG are now included within the definition of Structured ProductsG .
      2.  The reference in GEN Rule A2.2.1(f)(i) to "property of any description" covers tangible or intangible property, including SecuritiesG .
      [Added] DFSA RM62/2008 (Made 4th January 2009). [VER22/01-09]