Title: Press Release: An Awareness Press Release Regarding the Allegations that Might be Raised on the Resolutions Issued by the CMA
Kuwait, May 10, 2022 - Based on the Capital Markets Authority’s continuous endeavor to establish the principle of transparency by conveying and communicating information and data, and to educate the public on securities activities, which is one of the most important requirements for developing attractive and supportive capital markets for the national economy, and in order to establish clear concepts with regard to the circulars and decisions issued by the CMA to protect persons dealing in securities activities, in particular with regard to resolutions to suspend or cancel a license to practice securities activities, resolutions to suspend trading and cancel the listing of the shares of listed companies from the Securities Exchange and the subsequent effects and obligations on persons and companies involved in these resolutions.
The CMA draws the attention to the importance of verifying the false press releases that include information and allegations that are contrary to the truth, especially misleading traders by mixing facts in an effort to suggest the soundness of the position of persons against whom administrative or disciplinary decisions have been issued.
In this regard, the CMA emphasizes the provisions of Article (67) of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, that the CMA may decline or suspend or revoke a license, or restrict the activity of a person licensed to engage in the management of securities activities in accordance with the aforementioned Article.
The CMA also has the right to suspend trading or cancel the listing of the shares of a listed company on the Securities Exchange in order to protect traders and investors or to regulate the market, without any interference with other resolutions issued by the CMA or any other regulatory authorities.
It is worth noting in this regard the CMA’s Circular No. (04) of 2022 Regarding the Companies on which a Resolution was Issued Regarding Delisting their Shares from the Exchange, issued on 21/04/2022, which emphasizes the obligation of the Board of Directors of the Company where a resolution was issued to cancel the listing of its shares from the Securities Exchange to call the General Assembly to discuss this resolution, the company’s condition, and the future plan of the Board of Directors regarding addressing these conditions, and to hold the Company’s Board of Directors disciplinary accountable in the event of their refusal to hold the General Assembly within the specified period, in order to ensure the protection of shareholders’ rights.
Finally, any allegation other than the truth – claiming that the CMA has taken any action or resolution that it did not actually take, exposes the accuser to the penalties stipulated in Article (125) of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities.
The CMA confirms that it will continue its regulatory role in protecting investors, which will also create a fair, competitive and transparent financial market, and 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.
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