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CMA LAW: Circular No. (15) of 2019 to all Issuers of Securities
Date Publish
04 December 2019
The Capital Markets Authority (CMA) draws your attention that pursuant to Law No. (79) of 2019 regarding amending some provisions of Law No. (1) of 2016 on the Promulgation of the Companies Law issued on 25/07/2019 and the first paragraph of Article (234) that stipulates:
“The shares in the capital of the Closed Shareholding Company shall only be subscribed for upon incorporation by the Incorporators. The Authority shall set the rules of dealing in those shares and their disposal, and the regulations of safekeeping the shareholders’ record of this company, provided that these rules shall take into account that the transactions of trading, settlement, and clearing of these shares, and safekeeping them shall be through integrated technical systems. The Authority may authorize the Exchange to set these rules and determine the technical specifications for the systems of trading, settlement, and safekeeping of such shares.”
Circular No. (02) of 2019 to all Issuers of Securities issued on 17/02/2019 shall be cancelled and deemed null and void. The CMA shall meet the requirements of the first paragraph of Article (234) of the Companies Law issued on 25/07/2019.
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: 04 December 2019
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.
