Golden Gate bank guarantees confiscated

by Ben Flanagan Wednesday, 28 February 2007

Golden Gate Securities, the brokerage company that is banned from activities on the capital markets of the UAE, has had its $2.7m deposits at DFM and ADSM seized by the market regulator.

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The Securities and Commodities Authority (SCA) suspended the company's activities at the beginning of the year because of non-compliance with market rules and regulations.
All brokerage offices have to deposit AED10m ($2.7m) at the financial market to guarantee investors' rights. The announcement made yesterday means that the money could be used to settle claims by Golden Gate clients.

"The company bank guarantee deposited at both Dubai Financial Market and Abu-Dhabi Securities Market has been already confiscated," said the statement on the SCA website.

"Withholding action of all stocks owned by the company has been taken as well; accordingly, procedures are currently being implemented to compute all clients' rights on the part of the company to be settled."

"In this respect, SCA urges all investors who have financial dues on the company's part to claim against the said company for their rights as soon as possible. In this regard, the latest developments therein will be announced soon."

Earlier this year, ArabianBusiness.com reported that the Dubai Financial Market (DFM) said that the 3,000 investors with Golden Gate Securities will not lose their money.



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