The Capital Market Authority Board has approved the amended Listing Rules after it has been published on the website of CMA for public consultation for 90 days. The Authority stated that it took into account while working on the rules all observations, proposals and inquires received from the public, experts and all concerned parties during the consultation period. In addition, the Authority also took into consideration the joint project between the Capital Market Authority and the Saudi Stock Exchange (Tadawul) to separate the tasks and functions between them according to the related Capital Market Law provisions. Teams from both entities would review all the implementing regulations and internal policies and procedures to achieve the target goals. The new Rules can be viewed on the following link:
http://cma.org.sa/en/MediaCenter/PR/Documents/ListingRules-En.pdf
The Listing Rules regulates the requirements for companies' public offering and listing on the Saudi Stock Exchange (Tadawul), prospectuses, capital increase including the rights issue, continuous obligations on listed companies including the disclosure of material development and financial information. In addition, these rules regulate requirements related to Board of directors report, restrictions on shares transactions, notification related to substantial holdings in shares or convertible debt instruments and other related items.
Among the amendments made on the Rules, is requiring the issuer to appoint a financial advisor and a legal advisor when applying for capital reduction. Additionally, disclosures to the public of any information or material developments required pursuant to part 8 of the Rules must be made at least half an hour before the start of the trading period. Also, and pursuant to the amended Rules, the issuer is required to determine the need to publish an announcement to the public in response to rumors related to any material development.
Furthermore, the directors and senior executives of the issuer and any person related to them have been allowed to exercise the subscription's right in rights issues and the sale of such rights during prohibition period.
