CmaBoardReleases
Title: Transforming the Exchange’s Entity from Kuwait Stock Exchange to Boursa Kuwait Company
Kuwait, October 3 2016 – CMA’s Board of Commissioners has passed in its meeting today a number of resolutions relevant to transforming Kuwait Stock Exchange from a public entity to a shareholding company which follows the mechanisms adopted in the private sector. The issued resolutions are as follows:
- Resolution on Revoking the License of Kuwait Stock Exchange and Terminating the Decree Issued on August 14, 1983 on Regulating Kuwait Stock Exchange.
- Resolution on Amending the Brokers Guarantee System.
- Resolution on Licensing Boursa Kuwait Securities Company to Practice the Activity of a Securities Exchange.
The Board has also approved transforming the Exchange entity and transferring the ownership of the material and intellectual assets to Boursa Kuwait Company, according to the recommendation of the Advisory Committee formed pursuant to Article (156) of the CMA’s Law and the approval of CMA’s Board of Commissioners of such recommendation.
Transforming the Exchange’s entity to a shareholding company is not only a crucial point in the transformation plan, but it is also considered the first of its kind in Kuwait regarding transforming entities from public to private.
It is worth mentioning that the Exchange entity went through many phases, which are as follows:
- Establishment of Kuwait Stock Exchange
This phase started with the issuance of a Decree on regulating the Market in 1983, by which Kuwait Stock Exchange performed the regulatory and supervisory tasks of the securities Exchange in the State of Kuwait.
- Issuance of Law No. 7 of 2010
With the issuance of Law No. 7 of 2010 and its Executive Bylaws, the regulatory tasks of securities activities were transferred to the CMA. Moreover, pursuant to Article (156) of Law No. 7 of 2010, an authorization was issued on September 19, 2010 by the CMA to the Market Committee to manage the material and intellectual assets of the Market, and to undertake the administrative and financial functions required for administering the Exchange’s entity.
- Issuance of Law No. 22 of 2015, and Boursa Kuwait management of the Exchange’s entity
With the issuance of Law No. 22 of 2015 on amending Law No. 7 of 2010, Article (156) of the Law was amended to permit authorizing Boursa Kuwait Securities Company to manage the material and intellectual assets of the Market and to undertake the administrative and financial functions required for administering the Exchange’s entity. Additionally, pursuant to the new Executive Bylaws, the mechanism of transferring the tasks and authorizations from the Market Committee to Boursa Kuwait Securities Company were organized. In light of such changes, the CMA has issued the following resolutions:
- Resolution No. (80) of 2016 Regarding Ceasing the Activity of Securities Broker Registered in an Exchange of National Finance Brokerage Company;
- Resolution No. (81) of 2016 Regarding Ceasing the Activity of Securities Broker Registered in an Exchange of Al-Arabi Brokerage Company;
- Resolution No. (82) of 2016 Regarding Ceasing the Activity of Securities Broker Registered in an Exchange of Al-Robaeya Brokerage Company;
- 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;
- Resolution No. (34) of 2016 Regarding Documents Submitted by the Current Management of Kuwait Stock Exchange (KSE) to Boursa Kuwait Securities Company (BKSC);
- Resolution No. (63) of 2016 on Authorizing Boursa Kuwait Securities Company of Managing the Material and Intellectual Assets of Kuwait Stock Exchange and the Exchange’s entity;
Pursuant to the mentioned resolutions and the minutes of delivering and receiving the Exchange’s entity dated 24/4/2016, Boursa Kuwait took over the management of the Exchange’s entity starting form 25/4/2016.
In light of the resolutions issued by CMA’s Board of Commissioners in today’s meeting, the corporate personality of the Marekt is ended, its license is revoked, and the Decree relevant to its work is terminated starting from 30/9/2016. Further, Kuwait Stock Exchange’s entity is transferred to Boursa Kuwait Company. The Company became responsible for managing the entity starting from 3/10/2016.
Clarification to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.
For more information, kindly contact
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw