The Saudi Capital Market Authority’s (CMA) decision to amend the rules of securities offering and continuing obligations aims to regulate and develop the capital market, enhance its stability and support for national economy, said chairman Mohammed El-Kuwaiz.
The major amendments were focused on encouraging the foreign issuer to enter the main market, enhance the attractiveness of the local market and promote its role in capital raising.
On the other hand, the new changes seek to empowering entrepreneurship through opening a new channel to finance projects through the capital market.
The CMA continues to develop the investment climate and facilitate investments to enhance the capital market efficiency and its competitiveness locally and globally, El-Kuwaiz added.
The market regulator also aims to create an attractive environment for all local and foreign investors, based on the best international practices applicable in global capital markets. It seeks to build a stable and diversified financial sector and underline the strength of the Kingdom’s financial sector.
The amendments targeted to boost Nomu Parallel Market through attracting new listings and various categories of investors. They were related to the listing mechanism, board membership in listed companies, financial statements disclosure rules and the appointment of audit committee members, he explained.
The new rules also expanded the scope of exempt offering, through regulating individual investors’ requests to subscribe to offered securities, in addition to other amendments related to bankruptcy procedures under the Bankruptcy Law.
The new rule aims to attract a new category of investors to such offerings, such as entrepreneurs, venture capital firms as well as small and medium-sized enterprises (SMEs), he concluded.
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