About Damascus Securities Exchange

Comprehensive guide to the Syrian financial market and its operations

Establishment

The Damascus Securities Exchange was established by Legislative Decree No. 55, dated 1/10/2006, which provided for the establishment of a securities market in Syria, known as the Damascus Securities Exchange.

Key Features

  • Legal personality and financial and administrative independence
  • Linked to the Syrian Securities and Markets Commission and operates under its supervision
  • Main headquarters in Damascus
  • Possibility of conversion to a joint stock company owned by market members

Management

The market is managed by a board of directors consisting of nine members, appointed by a decision of the Prime Minister, based on a proposal from the board of commissioners of the Syrian Securities and Markets Commission.

Board Composition

1Two representatives from two public shareholding companies issuing securities, members of the market
2Two representatives from two licensed financial services and brokerage companies
3Three members from experts and qualified persons in financial markets
4One representative from the Syrian Securities and Markets Commission
5One representative from the Central Bank of Syria

Executive Management

An executive director of the market and his deputy are appointed by a decision of the Prime Minister based on the recommendation of the commission's board and the proposal of the market's board of directors, selected from those with competence and practical experience in managing financial markets and holders of appropriate scientific qualifications.

Financial Resources

The market's resources consist of the following:

1Membership fees and annual subscriptions of members
2Commissions collected by the market for buy and sell operations
3Allocations allocated to it by the state
4Grants and donations received by the market from any entity approved by the commission
5Fines resulting from violations of market regulations
6Any other resources decided by the commission

Membership

Mandatory Membership

Membership in the market is legally mandatory for all licensed financial services and brokerage companies (except limited liability financial consulting companies) and companies issuing securities whose shares are accepted for listing in the market.

Securities

Currently Traded Sectors

Agricultural Sector
Insurance Sector
Banking Sector
Industrial Sector
Services Sector

Future Listings

1Government securities issued by the Syrian Arab Republic (bills - bonds)
2Mutual fund units
3Islamic Sukuk
4Debt instruments issued by Syrian public shareholding companies
5Investment units issued by investment funds and companies

Market Divisions

The Damascus Securities Exchange is divided into:

Regular Market

The main market for established companies meeting all listing requirements

Parallel Market

Secondary market for companies with different listing requirements

Parallel Market A
Parallel Market B

Companies can be transferred between parallel markets based on listing conditions achieved

Trading

Trading Mechanism

Trading in the Damascus Securities Exchange is conducted according to the principle of continuous auction (Continuous Auction).

Allowed Operations

Order cancellation and cancellation of execution is allowed but in accordance with market regulations

Not Allowed

Forward selling, margin selling, or lending and borrowing of shares is not currently allowed

The market confirms that ownership restrictions recorded in market records and accounts, whether written or electronic, and any documents issued by it are the legal evidence of trading in the securities shown therein as of the date of those records, accounts, or documents unless proven otherwise.

Clearing & Settlement

Settlement Timeframe

Settlement in the Damascus market takes place on the second day (T+2), i.e., two days after trading

The market deals with a single settlement bank, which is the Central Bank of Syria

The establishment of a securities market came with the aim of working to provide an appropriate climate to facilitate the investment of funds, their employment, and securing the necessary capital to expand economic activity through establishing the foundations of proper, clear, and fair trading of securities.