Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (34/2017 Disciplinary Board) (69/2017 Authority)

The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 12/07/2017 on violation No. (34/2017 Disciplinary Board) (69/2017 Authority) filed against:
 
Boubyan Capital Investment Company 

“The Company shall pay a fine of KWD 2000 for each violation; the second, the sixth and the seventh violations”. 

This punishment is due to violating the provisions of Article (3-2-8) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company has assigned the tasks of a Representative of Securities Broker not Registered with an Exchange activity to NBK Capital, pursuant to the provisions of Article (2.3.9) of Boubyan online brokerage service policy that is previously mentioned, and violating the provision of (2-29) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, corresponding to Article (338) of the canceled Executive Bylaws. The Company, in its capacity as the manager of the previously mentioned fund, did not apply the same conditions and rules on all unitholders concerning clause (i/5) of Article (19) of the fund’s articles of association, which stipulate that whoever is willing to subscribe shall provide the subscription agent with the sale commission specified by the fund manager, provided that it does not exceed 2% of the total value of units. The fund manager did not collect the subscription fees from the fund unitholder (unitholder no. 00080043-001) that is due upon his subscription in the fund on 19/05/2014. It also violated the provision of Article (2-31-2) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, corresponding to clauses (1) and (4) of Second: Requirements of Real Estates Funds’ Assets of Resolution No. 8 of 2012 of CMA Board of Commissioners on the controls of investing in real estate funds. The Company did not issue contracts of use from the Public Authority of Industry, to transfer the right of usufruct of the fund regarding the previously mentioned real estates.          
   
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.