As part of the Capital Market Authority's (CMA) continuous efforts to develop the capital market in the Kingdom, protect investors therein, strengthen the mechanisms of compensating the investors, and facilitating litigation procedures in the Exchange to guarantee that affected persons receive their compensations in the easiest and prompt way possible , and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its Resolution on amending the Resolution of Securities Disputes Proceedings Regulation (Regulation), by adding a chapter regulating the Class Action Suit, which the CMA has previously posted its draft on its website for (30) calendar days, to obtain the views and remarks of the public.
The regulation of class action suit within the Resolution of Securities Disputes Proceedings Regulation, aims to facilitate litigations proceedings where the plaintiff is a group of persons who share the same legal issues, merits and subject matter of requests, which is appropriate to the nature of the listed companies and the size of their shareholders. The amendment also aims to develop litigation mechanisms and procedures in line with the best international practices, all of which are to enhance the attractiveness of the Saudi capital market and reduce the risk of investing in it, in addition to its role in reducing the time required to resolve investor compensation issues, which in turn, facilitate the work of the committees on one hand and focuses the efforts of investors on the other.
The Amended Regulations can be viewed on the Authority's website, via the following links:
The Resolution of Securities Disputes Proceedings Regulations
