CMA LAW: Circular No. (02) of 2019 to all Issuers of Securities

The Capital Markets Authority (CMA) draws your attention to the provisions of Article (2-9-1) of Module Four (Securities Exchanges and Clearing Agencies) 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 state for the following:

“Each Issuer shall have a special register kept with a Clearing Agency. The register shall contain the names, nationality, domicile, and number of Securities owned by each holder, the type and the capital paid in for each Securities.

The register shall be updated by any changes required to be registered and which are received from the Issuer or the Clearing Agency.  Any party with a relevant interest may request the Issuer or the Clearing Agency to provide them with such information from the register.”

Accordingly, it was decided to grant the Gulf Custody Company a transitional period not exceeding 31/12/2019 to keep the records of the current shareholders only, so that the issuers of the securities transfer the records of the shareholders to a clearing agency licensed by the CMA, with the company not renewing existing contracts or signing new contracts for keeping records of unlisted companies.

In this regard, the CMA affirms its keenness to provide protection and apply the CMA's Law and Executive Bylaws to all those involved in securities activities, and urges them to comply with these regulations, so that these transactions will gain the confidence of investors to create a sound investment environment based on the application of the law in accordance with the principles of fairness, transparency and integrity in accordance with best international practice.

Prof. Ahmad A. Al-Melhem
Issued on: 17/02/2019

Copy of the Official Document

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