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Kuwait, 17th May 2014 – In line with its pursuit to adopt and implement the best international practices for developing Kuwait's financial markets, and setting up the fairness, competitiveness, and transparency principles which would increase the protection of traders pursuant to the provisions of Law No. (7) of 2010 and its Executive Bylaw, and in conformity with the provisions of the Decree-law No. (25) of 2010, as amended, in addition to the Executive Bylaw, and in order to encourage the shareholding companies to list their shares in the Stock Exchange and attract the new capitals to be used for financing companies' activities and increasing the numbers of shareholders in those companies; the Authority has issued on 15th May 2014 the new regulations for "Listing Companies' Shares in the Stock Exchange". These regulations are compatible with the unified rules of listing securities in the GCC countries.
The following are some of the important issues regulated by the new regulations of listing shares in the Stock Exchange:
- Providing the companies whose shares are approved to be listed in the Main Market the right to increase their capitals through public subscription in order for to serve the financing goals of the companies' activities and its strategic plans of expansion. Such increase shall increase the number of shareholders and create an active trading environment.
- Reducing the required annual profits' percentage from 7.5% to 5% of the capital
- Reducing the required shareholders equities' percentage from 115% to 110% of the capital
- Increasing the level of the company's operating performance, which shall equal 75% of the total income
- The companies shall practice one of its main activities (as minimum) during the period preceding the submission of the listing request. The previous regulations stipulated not requesting to practice all of the activities
- Granting the Board of Directors the authority, in case of approving the optional withdrawal, to submit a purchase offer to those shareholders willing to sell before the actual withdrawal from the listing
- Being flexible with companies which are reducing their capitals by granting them a period for adjusting their situations
In conclusion, the Capital Markets Authority continuously seeks improving and developing the rules and requirements of listing listed companies' shares in the Stock Exchange in line with the best international rules, regulations, and standards in order to develop the Stock Exchange and protect traders, while taking into consideration the situations of the companies listed in the Stock Exchange.
Title: Issuance of the New Listing Regulations of Shareholding Companies' Shares in the Securities Exchange
Date Publish
17 May 2014
Kuwait, 17th May 2014 – In line with its pursuit to adopt and implement the best international practices for developing Kuwait's financial markets, and setting up the fairness, competitiveness, and transparency principles which would increase the protection of traders pursuant to the provisions of Law No. (7) of 2010 and its Executive Bylaw, and in conformity with the provisions of the Decree-law No. (25) of 2010, as amended, in addition to the Executive Bylaw, and in order to encourage the shareholding companies to list their shares in the Stock Exchange and attract the new capitals to be used for financing companies' activities and increasing the numbers of shareholders in those companies; the Authority has issued on 15th May 2014 the new regulations for "Listing Companies' Shares in the Stock Exchange". These regulations are compatible with the unified rules of listing securities in the GCC countries.
The following are some of the important issues regulated by the new regulations of listing shares in the Stock Exchange:
- Providing the companies whose shares are approved to be listed in the Main Market the right to increase their capitals through public subscription in order for to serve the financing goals of the companies' activities and its strategic plans of expansion. Such increase shall increase the number of shareholders and create an active trading environment.
- Reducing the required annual profits' percentage from 7.5% to 5% of the capital
- Reducing the required shareholders equities' percentage from 115% to 110% of the capital
- Increasing the level of the company's operating performance, which shall equal 75% of the total income
- The companies shall practice one of its main activities (as minimum) during the period preceding the submission of the listing request. The previous regulations stipulated not requesting to practice all of the activities
- Granting the Board of Directors the authority, in case of approving the optional withdrawal, to submit a purchase offer to those shareholders willing to sell before the actual withdrawal from the listing
- Being flexible with companies which are reducing their capitals by granting them a period for adjusting their situations
In conclusion, the Capital Markets Authority continuously seeks improving and developing the rules and requirements of listing listed companies' shares in the Stock Exchange in line with the best international rules, regulations, and standards in order to develop the Stock Exchange and protect traders, while taking into consideration the situations of the companies listed in the Stock Exchange.
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.
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