Article 21 Of Chapter 2
Section: Capital Markets Authority
The Authority shall have financial reserves to ensure financial stability in the long term in order to face the systemic risk expected to occur in the Securities activities. The amount and means of creating such reserves shall be determined by a decision issued by the Council of Ministers – upon the Board’s proposal. The Authority shall manage such reserves, and if these reserves reach the determined amount, the surplus shall be transferred to the Public Treasury of the State. If at any time the reserves become less than the determined amount, then the Government shall supplement and pay the lacking amount. The Authority shall also have a pre-determined operational capital of KD 40.000.000, from which the expenses of all the Authority’s activities shall be paid. Expenses shall be paid and covered directly from the Authority’s cash reserves, in accordance with the rules of the Bylaws. The Authority’s capital may be increased through a Decree.
* Article (21) is amended pursuant to Law No. 22 of 2015 Amending Some Provisions of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority & Regulating Securities Activities.