Enforcement Law & Capital Markets
Enforcement Mechanisms over Securities under Jordanian Law
This summary outlines the rules for enforcing claims against securities in Jordan, addressing the definition, principal types, and typical issuers of securities. It also summarizes procedural safeguards for attachment and sale, and the roles of the Amman Stock Exchange and the Securities Depository in enforcement operations.
Updated: 11 February 2025
Prepared and reviewed by: Ashraf Al-Khawaja
What Constitutes Securities and Their Main Types
Jordanian law defines securities under the Securities Law to cover equity shares, debt instruments (bond issues), derivatives (e.g. futures and options), investment fund units, and deposit receipts. Certain instruments (for example, founding shares) have raised doctrinal debate about tradability, while bonds appear in multiple subtypes (convertible, fixed-rate, variable-rate, etc.).
Issuers of Securities
Issuers comprise corporate forms such as private and public joint-stock companies and limited partnerships with shares, as well as the state and authorized public bodies issuing government debt instruments. Investment funds and investment companies also issue fund units or securities representing managed portfolios, subject to the registration and supervisory requirements set out in capital markets law.
Procedures for Attachment and Enforcement over Securities and Practical Limits
Enforcement begins with filing an execution request at the Execution Department of the Court of First Instance together with an enforceable instrument; the debtor must be notified and afforded a grace period prior to attachment. Attachment methods depend on whether securities are registered or bearer instruments; for securities held at the Depository Center, the attachment must be recorded in the Center’s registers in accordance with the data requirements set by registration instructions. The sale of attached securities must follow market mechanisms: sales are executed through the financial market by an authorized broker and ownership transfers are recorded at the Depository; direct transfer outside the prescribed sale procedures is not permitted.
Practical Effects and Relevant Judicial Findings
Court rulings have emphasized that a valid enforceable instrument is a prerequisite for enforcement proceedings. Jordanian courts have held that the Execution Law defers the regulation of securities sales to capital market rules and implementing instructions, and that an order transferring ownership without following those sale procedures is improper. Other decisions underline parties’ contractual obligations toward brokers (payment of purchase price and commissions) and the formal requirements that attachment orders must satisfy under the applicable instructions.
Legal notice
Notice: This content is for general educational purposes and is prepared from the source linked on the summary page. It does not constitute actionable legal advice. Verify the original statutory texts, subsequent amendments and applicable dates, and consult a licensed Jordanian lawyer for case‑specific guidance.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.