CmaBoardReleases
Title: Press Release: Suspension of Trading of Equipment Holding Company's Shares at Boursa Kuwait Securities Exchange
Kuwait, October 05, 2023 – In pursuit of the continuous efforts of the Capital Markets Authority’s (CMA) to protect investors from any actions or behaviors that may violate Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments thereto, and in implementation of the provisions of the mentioned Law and its Executive Bylaws, the CMA Board of Commissioners passed in its meeting No. (29) of 2023 held on 04/10/2023 its Resolution stipulating the following:
First: The share of Equipment Holding Company (K.S.C.C.) listed in Boursa Kuwait Securities Exchange is hereby suspended from trading according to Items No. (3) and (5) of Article (1-20) of Module Twelve (Listing Rules) 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, which stipulate the following:
“The Authority may temporarily suspend trading in the Exchange, and suspend the trading of any Security listed in the Exchange in any of the following cases:
….
3. Achieve investor protection in the markets.
….
5. If the Auditor has given a material, qualified opinion on the periodical or annual financial statements, or in the event that the contract with the Auditor was terminated as a result of a disagreement between the Listed Company and the Auditor.”
This is until the Company takes the necessary measures to address the reservations contained in the Company’s external auditor’s report on the financial statements for the year that ended on 31/12/2022 and the subsequent periodical financial statements, in particular the reservations of the debit balances and the machinery and equipment balances transferred from to the inventory account, ensuring that the balances of the financial statements are recorded in a fair and sound manner. The Company is required to provide the CMA with financial statements that reflect the financial impact resulting from addressing those observations no later than 31/03/2024.
Second: The continuity of listing the shares of Equipment Holding Company at Boursa Kuwait Securities Exchange shall be considered in the event that the Company fails to meet the CMA’s regulatory requirements stipulated in Article (1) of this Resolution.
Third: Equipment Holding Company shall provide the CMA with a weekly report on the updates and procedures taken to address the suspension of trading its shares listed in Boursa Kuwait Securities Exchange, as of the issuance date of CMA’s Resolution in this regard.
In conclusion, the CMA confirms that it will continue its regulatory role in protecting investors, which will also create a fair, competitive and transparent financial market, as well as reduce the systemic risks that are expected to occur in securities activities, and working to ensure compliance with laws and regulations related to securities activities.
Ends-
Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw