<http://www.menafn.com/qn_print.asp?StoryID=67783&subl=true> MENAFN - Middle East North Africa . Financial Network Proxy trading thriving at DSM bourse The Peninsula - 25/10/2004 Doha: DSM officials have urged Qataris not to encourage outsiders to indulge in proxy trading, as demand for identity (ID) cards of nationals and power of attorney issued by them, is said to be increasing in view of the forthcoming mega public issue of Qatar Gas Transport Company (QGTC). According to Al Sharq, there is a thriving black market as demand for ID cards of Qataris for proxy subscription to QGTC issue to be launched in January next year, is picking up fast. Al Sharq quoted DSM sources as saying there are many takers for ID cards of Qataris for the initial public offering of QGTC set for floatation on January 16, 2005. DSM sources told The Peninsula yesterday that some rich investors from Kuwait, UAE and Saudi Arabia were coming to Qatar and persuading some nationals to lend their as well as their family members' ID cards for the purpose of proxy trading. According to DSM rules, a national can sign a power of attorney endorsed by the legal documentation department at the Ministry of Justice authorising a relative, a friend or a foreign partner to buy shares in his name. "This facility we have in place considering that a Qatari cannot be expected be physically present in Doha all the time, so he has the right to appoint a nominee for purchasing or selling local stocks," a DSM source told The Peninsula. In case the stocks are to be sold, a separate power of attorney is issued authorising a relative or friend, who could be a non-Qatari. However, the cheque (of the amount of sale proceeds) is issued by a broker only in the name of the Qatari buyer of the shares concerned. The cheque is not bearer, so the money is transferred to the bank account of the national. It is okay as long as an ID of a Qatari and the power of attorney issued by him or her is for genuine reasons. But the problem is that some Qataris are being offered large sums by outsiders, especially some rich investors from neighbouring countries, for using their ID cards for proxy trading, DSM sources said. Lending an ID and giving a power of attorney for the purpose of proxy trading is not only illegal but also hurts the interest of small Qatari investors, a DSM source said. "That is why we are urging nationals not to encourage this trend. Instead of violating law and looking for easy money Qataris should take loans from local banks and invest in stocks themselves," the source added. -- ----------------- R. A. Hettinga <mailto: rah@ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'