As part of the Capital Market Authority's ("CMA") strategic objectives to develop the Capital Market and enhance the confidence of the participants in the Capital Market, and based on the Capital Market Law issued by Royal Decree No. (M/30), dated 2/6/1424 H., the CMA Board issued its resolution to publish the Draft Amendments to the Resolution of Securities Disputes Proceedings Regulations ("Draft Amendments") for public consultation for a period of (30) calendar days ending on 5/1/1443H. corresponding to 13/8/2021G.
The Draft Amendments aim to improve the proceedings of securities disputes before the Committees for Resolution of Securities Disputes and develop procedures that enhance the speed and efficiency of hearing and deciding on the lawsuit. The Draft Amendments also aim to develop every aspect that would enhance the confidence of the capital market's participants, support its growth and prosperity, and enhance investors' protection.
The main elements of the Draft Amendments are as follows:
- Regulating the procedures for considering the lawsuit through the electronic system, including submitting and filing the claim with the Committee, holding remote hearings, exchanging memorandums, issuing decisions, and objecting to them.
- Adding a requirement that the pleading and submission of any requests or memoranda to the Committee or Appeal Committee must be from a lawyer or legal representative licensed in the Kingdom, in all claims in which the plaintiff is a capital market institution or a listed joint stock company.
- Regulating the procedures for submitting incidental applications to the Committee, including the right of parties to submitting incidental applications that are related to the original case directly to the Committee.
- Regulating the registering of a class-action lawsuit directly by the Committee if a number of lawsuits considered before the Committee are identical in terms of the legal bases, merits, and the subject matter of the request.
The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through any of the following:
- The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center via the following link: (istitlaa.ncc.gov.sa).
- The prescribed form via the following email: (Laws.Regulations@cma.org.sa).
All comments will be taken into full consideration for the purpose of finalizing the Draft Amendments.
The Draft Amendments can be viewed via the following link:
Draft Amendments to the Resolution of Securities Disputes Proceedings Regulations
Prescribed form for providing comments
