CmaBoardReleases
Title: Press Release: Cancelation of the Listing of Al-Bareeq Holding Company's Shares from Boursa Kuwait Securities Exchange
Kuwait, April 21, 2022 – Within the framework of the Capital Markets Authority’s (CMA) continuous endeavor to provide protection to public investors, and in confirmation of its compliance with the provisions of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments, CMA Board of Commissioners Resolution passed in its meeting No. (16) of 2022 held on 20/04/2022 was issued stipulating the following:
“The listing of Al-Bareeq Holding Company's shares is hereby canceled from Boursa Kuwait Securities Exchange as of 21/04/2022, according to Item No. (8) of Article (2-4-1) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and their amendments which stipulates the following:
“The Authority may cancel the listing of the Shares of a shareholding company listed in the Exchange in any of the following cases:
…
8. If the Authority deems that canceling the listing is necessary for protecting investors or regulating the market.”
The CMA notes that it issued this Resolution due to the Company’s failure to take the necessary procedures to record its assets of material value in amounts that reflect its nominal value, and that a big part of such assets did not meet the regulatory requirements necessary to be recognized as the Company’s assets which resulted in misleading and harming the dealers in the market.
In addition, serious remarks were monitored on Al-Bareeq Holding Company, its Board of Directors and other related parties for the Company’s failure to comply with the provisions of the aforementioned Law and its Executive Bylaws, in particular the instructions of disclosure and transparency, corporate governance, and listing rules, as well as providing misleading information to the CMA and the dealers of the market.
The issuance of this Resolution is in light of Resolution No. (50) of 2022 issued on 04/04/2022 Regarding Suspending the Shares of Al-Bareeq Holding Company from Trading at Kuwait Securities Exchange as of 05/04/2022 until the CMA completes its supervisory procedures and activities. The mentioned Resolution aimed to provide the necessary protection for investors and dealers in securities, based on Items (1) and (3) of Article 1-18 of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.
It is worth noting that the Company was subject to more supervision during the last period pursuant to CMA’s Resolution No. (126) of 2021 issued on 04/11/2021 Regarding Resuming the Trading on AL-Bareeq Holding Company's Shares in Boursa Kuwait Securities Exchange and Subjecting it to more Supervision.
The Company shall also comply with CMA’s Circular No. (4) of 2022 issued on 21/4/2022.
In conclusion, the CMA confirms that it will continue its supervisory role in protecting public investors, which will also create a fair, competitive and transparent financial market, as well as reduce the systemic risks that are expected to occur in securities activities, in addition to working to ensure compliance with laws and regulations related to such activities.
Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw