Qatar National Bank (QNB), the largest financial institution in the State of Qatar and in the MENA region, received its Custody License from The Qatar Financial Markets Authority (QFMA) on the 13th of June, thus enabling QNB to act as intermediary between the Qatar Exchange (QE) depository and its investors.
In line with the requirements imposed by the QFMA, the Bank received approval from the Qatar Exchange in connection with its intended role as a QE Depository Participant. The QE is the country’s principal stock market and, in recent years, the Bank has enjoyed close co-operation with it.
As a QE Depository Participant, QNB will perform custody of QE-listed securities, covering both equities and T-Bills. This in addition to QNB’s suite of products and services implies a major opportunity and a further enhancement of shareholder value.
Custodians are responsible for settlement and safe-keeping of clients’ financial assets (including equities and bonds), together with collection and processing of corporate information and income receivable (including dividends and coupons) in respect of the assets held. In addition, custodian institutions provide up-to-date information to investors in connection with listed companies and their respective annual general meetings and corporate actions.
With the QFMA license, QNB becomes a Depository Participant with the QE. The license also provides the platform from which QNB will offer international custody services internationally, via the bank’s sub-custodian network.