Exempted Transfers
Are all the parties for the purpose of dividing the joint ownership of securities required to be present at the SDC to complete the transfer process?
All joint owners should approve to conduct the division through duly signing the transfer forms in front of authorized SDC employee or the presence of their legal representative that is authorized to divide the joint ownership by virtue of a power of attorney that expressly states the agent's authorization to divide the joint ownership and assign the securities necessary to rectify the number of shares between the joint owners.
How are the shares of the deceased distributed to the inheritors?
Shares are distributed to the inheritors in accordance with the inheritance shares specified in the inheritance deed where each inheritor obtains his percentage.
Fractions due to distribution of shares and/or the securities trading unit shall be rectified through assigning the fractions to one or more of the inheritors.
When will the transfer of securities be reflected in the transferee’s account?
After submitting the corresponding application and the necessary documents to the SDC, the SDC executes the transaction according to applied procedures, the transferor's account will be debited and the transferee's account will be credited immediately.
What are the cases in which the founding shares ownership is transferred?
The ownership of founding shares is transferred in any of the following cases:
- Inheritance transfer.
- Family transfers that occur between ascendants and descendants and between siblings or between half-siblings and between spouses. It is not allowed in any case, to transfer the securities owned by the minors.
- Transfers between founders during the restriction period on those shares.
- Transferring the ownership of a founding share to others under an irrevocable judicial decision.
What are the relationships allowed by the SDC to perform family transfers?
The SDC allows transfers between the transferor (the person who initiates the transfer) and transferee (the person who receives the transferred securities), who are immediate family members (Ascendants and descendants and between siblings or between half-siblings and between spouses).
Documents that prove the relation between the transferor and the transferee must be attached. Additionally, it is not allowed in any case, to transfer the securities owned by the minors.
What are exempted transfers?
| Exempted transfers are divided to two main categories: | ||
| • | Transactions excluded from trading through the market which include the following: | |
| 1. | Inheritance transfers. | |
| 2. | Family transfers that occur between ascendants and descendants and between siblings or between half-siblings and between spouses. | |
Are all the inheritors required to be present at the SDC to complete the inheritance transfer process?
No, the presence of all inheritor is not required. The attendance of one inheritor or his legal agent is sufficient to complete the transfer. provided that all the needed requirements are met.
Is the transferring of securities is done directly after accomplishing the procedure of family/ inheritance transfer?
Yes, the ownership will be transferred directly (Spot basis).
