Title: Resolution No. (90) of 2016 Regarding Revoking the License of Kuwait Stock Exchange and Terminating the Decree Issued on August 14, 1983 on Regulating Kuwait Stock Exchange

Having Perused:
- Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- The Decree issued on August 14, 1983 on Regulating Kuwait Stock Exchange; and
- Ministerial Resolution No. (35) of 1983 on the issuance of the internal bylaws of Kuwait Stock Exchange; and
- Decision of Kuwait Stock Exchange Committee No. (1) of 2002 on the Brokers Guarantee System, and its amendment No. (2) of 2004; and
- Resolution No. (37) of 2013 on the approval of licensing the establishment and specifying the capital of Boursa Kuwait Securities Company; and
- CMA Board of Commissioners Resolution No. C.B.C. 40-1 of 2014 passed in its meeting held on 22/1/2014 on approving the recommendations mentioned in the minutes of the meeting of the Advisory Committee to valuate the material and intellectual assets of Kuwait Stock Exchange No. (1) of 2014.
- Resolution No. (72) of 2015 on issuance of the Executive Bylaws of Law No. (7) of 2010; and
- Resolution No. (80) of 2015 on authorizing Boursa Kuwait Securities Company to manage the material and intellectual assets of Kuwait Stock Exchange and to undertake the administrative and financial functions required for administering the Exchange’s entity; and 
- Resolution No. (81) of 2015 regarding Approving the Detailed Plan of the Means of Accomplishing the Passing and Receiving Operation of Kuwait Stock Exchange; and
- Resolution No. (82) of 2015 Regarding Formation of the Mutual Work Team for Passing and Receiving Kuwait Stock Exchange; and
- Resolution No. (33) of 2016 Regarding the Report of the Current Tasks and Duties of Kuwait Stock Exchange (KSE), and the Recommendation of the Tasks that shall be Transferred to the Authority and Kuwait Clearing Company (KCC), and the ones that shall Remain at the Market; and
- Resolution No. (34) of 2016 regarding the Documents Submitted by the Current Management of Kuwait Stock Exchange (KSE) to Boursa Kuwait Securities Company (BKSC); and
- Minutes of handing over and receiving the Exchange’s entity dated 24/4/2016; and
- Resolution No. (63) of 2016 on authorizing Boursa Kuwait Securities Company to manage the material and intellectual assets of Kuwait Stock Exchange and the Exchange’s entity; and
- CMA Board of Commissioners Resolution No. C.B.C. No. 1-32 of 2016 passed in its meeting held on 27/9/2016 on approving the recommendations mentioned in the minutes of the Advisory Committee to valuate the material and intellectual assets of Kuwait Stock Exchange No. (3) of 2016; and
- Based on CMA Board of Commissioners Resolution passed in its meeting No. (33) of 2016 held on 3/10/2016.

The Following Was Resolved

Article (1) 
The share of Kuwait Stock Exchange in the Brokers Guarantee System shall be transferred to the CMA, and a resolution shall be issued by the CMA to amend the Brokers Guarantee System accordingly.

Article (2)
The material and intellectual assets of Kuwait Stock Exchange – hereinafter referred to as “Market” – shall be transferred from the Market to Boursa Kuwait Securities Company – hereinafter referred to as “Boursa Kuwait” – according to the recommendations of the Advisory Committee and the related resolutions of CMA Board. The license of the Securities Exchange shall be transferred from the Market to Boursa Kuwait, by revoking the license of the Market and granting Boursa Kuwait a license to practice the activity of the Securities Exchange, through which Boursa Kuwait replaces the Market, and it shall also replace it in its existing rights and obligations as on 30/9/2016, according to the provisions that will be included in the agreement of transferring the Exchange’s entity, and its material and intellectual assets.

Article (3)
The Exchange’s assets mentioned in Article (2) of this Resolution shall be transferred from the Market to Boursa Kuwait, and shall be registered in Boursa Kuwait’s books in a temporarily estimated value based on the books value as on 30/9/2016. The Advisory Committee shall define the fair value of the Market’s assets and its license as on 30/9/2016, and shall present them to CMA Board of Commissioners to issue its resolution. Boursa Kuwait shall be notified of such resolution, and as soon as Boursa Kuwait is notified, it shall register the fair value of the Markets’ assets and license it in its books as a due debt for the CMA.

Article (4)
Starting from 3/10/2016, the Decree issued on August 14, 1983 on Regulating Kuwait Stock Exchange is terminated, the Market’s license is revoked, and its corporate personality is ended.  The ministerial resolution No. (35) of 1983 on issuance of the internal bylaws of Kuwait Stock Exchange is also terminated, except Articles 2, 3, 4, 5, 6, 14, 15, 16, 17, 18, 25, 27, 28, 29, 33, 34.

Article (5) 
The CMA hereby grants Boursa Kuwait a license to practice the activity of a Securities Exchange starting from 4/10/2016, by which Boursa Kuwait replaces the Market.

Article (6) 
All securities listed in Kuwait Stock Exchange shall be listed in Boursa Kuwait starting from 4/10/2016. Issuers of such securities shall be liable before Boursa Kuwait regarding all the obligations that were decided for the Market’s interest.

Article (7) 
A Securities Broker Registered in an Exchange and a Qualified Securities Broker Registered in an Exchange shall be licensed as a Securities Broker/Qualified Securities Broker Registered in an Exchange staring from 4/10/2016. He shall be liable before Boursa Kuwait regarding all the obligations that were decided for the Market’s interest.

Article (8) 
Notwithstanding the provisions of this Resolution, all the existing resolutions, regulations and internal bylaws of Kuwait Stock Exchange as in the date of this Resolution are enforced until they are canceled or amended by the CMA pursuant to the provisions of Law No. & of 2010 and its Executive Bylaws.

Article (9)
The concerned bodies shall execute this Resolution, each within its jurisdiction. It shall be published in the Official Gazette.      

Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners

Issued on: 4/10/2016

Copy of the Official Document