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Kuwait, 22nd July 2013 – In line with the Capital Markets Authority's endeavour to implement the sound governance principles, which includes the full disclosure policy for achieving fairness and transparency as well as preventing any conflict of interests and exploitation of insider information, the Authority has issued on 22/7/2013 regulations concerning "Regulating the Dealings in Securities of Board of Directors Members, Executive Staff Members, and Other Insiders in Shareholding Companies, and the Method of Disclosure". The issuance of these Regulations is based on the provisions of Law No. (7) of 2010 regarding the "Establishment of the Capital Markets Authority and Regulating Securities Activity", and its Executive Bylaw, in addition to the provisions of Decree Law No. (25) of 2012 on the issuance of the Companies Law, as amended.. The Authority's Bylaw included several objectives that the Authority strives to achieve, one of which is the implementation of the full disclosure policy.
According to the mentioned Regulations, the shareholding companies issuing the securities should take a series of procedures to limit the misuse of any material information when regulating the securities transactions of the board of directors' members, executive staff members, and other insiders. The Insider should maintain the confidentiality of any material data and information. The Regulations also specified the trading ban periods for the licensed persons in order to avoid the suspicion of misusing internal data and material information, as well as the mechanism of the insiders' disclosure of the information related to dealing in securities as per the form prepared for such purpose. The issuers should prepare a list of the insiders and provide the Authority and the Stock Exchange of such list within 30 business days from enforcing the Regulations.
CMA LAW: Capital Markets Authority Issues Regulations Concerning Regulating the Dealings in Securities of Board of Directors Members, Executive Staff Members, and Other Insiders in Shareholding Companies, and the Method of Disclosure
Date Publish
22 July 2013
Kuwait, 22nd July 2013 – In line with the Capital Markets Authority's endeavour to implement the sound governance principles, which includes the full disclosure policy for achieving fairness and transparency as well as preventing any conflict of interests and exploitation of insider information, the Authority has issued on 22/7/2013 regulations concerning "Regulating the Dealings in Securities of Board of Directors Members, Executive Staff Members, and Other Insiders in Shareholding Companies, and the Method of Disclosure". The issuance of these Regulations is based on the provisions of Law No. (7) of 2010 regarding the "Establishment of the Capital Markets Authority and Regulating Securities Activity", and its Executive Bylaw, in addition to the provisions of Decree Law No. (25) of 2012 on the issuance of the Companies Law, as amended.. The Authority's Bylaw included several objectives that the Authority strives to achieve, one of which is the implementation of the full disclosure policy.
According to the mentioned Regulations, the shareholding companies issuing the securities should take a series of procedures to limit the misuse of any material information when regulating the securities transactions of the board of directors' members, executive staff members, and other insiders. The Insider should maintain the confidentiality of any material data and information. The Regulations also specified the trading ban periods for the licensed persons in order to avoid the suspicion of misusing internal data and material information, as well as the mechanism of the insiders' disclosure of the information related to dealing in securities as per the form prepared for such purpose. The issuers should prepare a list of the insiders and provide the Authority and the Stock Exchange of such list within 30 business days from enforcing the Regulations.
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