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Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (8/2019 Disciplinary Board) (181/2018 Authority)
Date Publish 14 February 2019


The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 14/02/2019 on violation No. (8/2019 Disciplinary Board) (181/2018 Authority) filed against:

Noor Financial Investment Company

That " the company shall be fined KWD 1000 for each of the two violations assigned to it, for the delay in the disclosure of material information, and not preparing the potential risk report in case of failure to reschedule the debts of the company"

This punishment is due to following:

1. Violation of the provisions of Article (4-2-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of the aforementioned law, as follows:

a. The sale of the investment real estate property in Salmiya area on 23/1/2017, the date of signing the initial contract between the parties, with the delay of the company to disclose this information until 15/2/2017.

b. The sale of the investment real estate property in Khaitan area on 2/10/2017, which is the date fixed in the document of ownership / contract of sale issued by the Ministry of Justice - Real Estate Registration Department, with the delay of the company to disclose this information until 4/10/2017.

2. Violation of the provisions of Article (6-3) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the aforementioned law, the lack of a technical study approved to measure, monitor, and mitigate the risks that may be encountered as a result of the failure of the plan to reschedule the debts of the company, the impact of the failure of the plan on the financial position of the company, in addition to study possible alternatives to the plan, based on the company's letter dated 30/10/2018, which stated that "there is no detailed study of risk management on debt, there are only details of liquidity risk ", without addressing the other risks, including but not limited to ( reputation risks, operating risks, legal risks, etc.), and the  mentioned report did not address the alternatives that the company may have if it fails to pay its debt to the creditor banks and how to support its operational activity thereafter.

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.

 

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
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