CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (11/2023) Disciplinary Board- (197/2022) Authority, and imposition of a fine against Real Estate Trade Centers Company for violating the rules of Real Estate Assets Valuation.

Announcement regarding issuance of Disciplinary Board Resolution No. (11/2023) Disciplinary Board- (197/2022) Authority and imposition of a penalty against Real Estate Trade Centers Company for violating the rules of Real Estate Assets Valuation.

For the following reasons:

This is for violating the provision of paragraph (d) of Item (2) of Appendix (1) (Real Estate Assets Valuation) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company failed to comply with the valuation of a residential building in the amount of KWD 1,495,000 (one million four hundred and ninety-five thousand Kuwaiti Dinars) listed under the investment real estate item in the statement of financial position during the legal period specified in one month from the date of the financial statements for the financial year ending on 31/12/2021 for the Company. It did not valuate the land until 23/02/2022 by a bank, and on 8/3/2022 by a real estate company, exceeding the legal period specified by one month from the date of the financial statements.

The Resolution included the infliction of the following penalty: -
“Real Estate Trade Centers Company is fined an amount of KWD 1,000 (one thousand Kuwaiti Dinars) for the attributed violation”.

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.