INSIGHTS

The Qatar Financial Market Authority issues rules regarding employee share purchase incentives in listed companies

March 28, 2021

The QFMA recently issued rules regarding incentive plans for the purchase of shares in listed companies by their employees (“Rules”). According to the Rules, the number of shares in a listed company that may be allocated for a share purchase incentive scheme may not exceed seven (7) percent of the total paid-up capital of the company, and the shares owned by one person may not exceed ten (10) percent of the overall scheme’s shares.

Furthermore, the voting rights attached to the shares may not be exercised by the employee until they are fully purchased. A company’s board members are excluded from participation in the incentive scheme.

The Rules are part of the QFMA’s efforts to meet the needs of financial market regulation and supervision, to facilitate ease of access to the market, and to increase investor and dealer confidence.   

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