Article 4 Of Chapter 2

Section: Capital Markets Authority

The Authority’s Board of Commissioners shall :

1 - Issue necessary bylaws and instructions to execute the Law. It shall also work on issuing recommendations and the necessary studies needed to develop the regulations which assist in achieving its objectives.

2 - With consideration to the provisions of Article (33) of this Law, the Board shall issue licenses to Securities Exchanges and for related activities, and shall supervise their activities.

3 - Issue licenses to members of Securities Exchanges, and licenses to their employees and anyone who works in the management of Securities activities, including asset management and investment funds companies, brokerage companies, Securities custody companies, advisory services institutions, etc.

4 - Regulate the promotion of investment funds and other Collective Investment Schemes.

5 - Regulate Public Subscriptions or Initial Public Offerings (IPOs) and Private Placements for Kuwaiti and non-Kuwaiti Securities and supervise them.

6 - Regulate the process of mergers and acquisitions and supervise them.

7 - Set up rules of supervision and self-regulatory organization in Securities activities.

8 - Approve of the rules and regulations proposed by an Exchange administration prior to commencement of its business.

9 - Set up rules for compliance with professional ethics, for competence, and for the integrity of licensed Persons, and approve of the same.

10 - Provide appropriate systems to protect Traders and work towards minimizing improper and unfair practices in the Securities activities.

11 - Cooperate with supervisory authorities and foreign counterpart institutions with regards to organizing, coordinating and participating in joint activities.

12 - Carry out all duties and authorities entrusted in it in this Law or any other law with regard to reducing market instability.

13 - Issue all necessary decisions which fall within the Authority’s competences and are deemed necessary to implement this Law and its Executive Bylaws. It may delegate some of these authorities.

14 - Set up special rules, regulations and procedures needed by the licensed Persons who work in accordance with Islamic Sharia.

15 - Issue rules for Market Makers. * Article (3) 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.