CmaBoardReleases
Title: Press Release Regarding the Amendment of Some Provisions 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
Kuwait, April 20, 2021 – The Capital Markets Authority (CMA) has issued on Monday April 19, 2021 its Resolution No. (49) of 2021, amending some provisions of the Executive Bylaws on financial derivatives transactions, and according to which the following was decided:
- Amending Module One (Glossary), Module Eight (Conduct of Business) and Module Eleven (Dealing in Securities) of the Executive Bylaws for Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments in accordance with Annex No. (1) attached to the Resolution.
- Companies whose objectives include brokerage in financial derivatives transactions, or those companies that market services related to financial derivative trading, shall apply to adjust their situation pursuant to Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments, and the Authority’s regulations issued in this regard. This shall be through the submission of an application for a license during a transitional period of one year maximum from the issuance date of this Resolution.
- The Authority is responsible for supervising financial derivatives transactions according to the definition of the security and financial derivative, which are transacted in the State of Kuwait, starting from the issuance of this Resolution and according to the provisions of Article (2) thereof.
- The services provided in relation to financial derivative brokerage and its marketing services are limited to professional clients only.
- It is prohibited to offer or issue financial derivatives in the State of Kuwait, unless the Authority decides otherwise.
The Authority also indicates the necessity for licensed persons to abide by the provisions of Resolution No. (49) of 2021 and Circular No. (06) of 2021 Regarding Financial Derivatives Transactions, from the date of their issuance.
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