a. A market shall be established in the Kingdom for the trading in Securities which shall be known as the “Saudi Stock Exchange”, and will have the legal status of a joint stock company in accordance with the provisions of this Law. This Exchange shall be the sole entity authorized to carry out trading in Securities in the Kingdom.
b. Securities listed or traded in a regulated market outside the Kingdom are not subject to the provisions of this Law even though trading in such a market originates by orders transmitted telephonically or electronically from within the Kingdom, with the exception of what may be agreed upon by the Authority with other foreign authorities.
c. The objectives of the Exchange include the following:
- Ensuring fair, efficient and transparent listing requirements, trading rules and technical mechanisms and information for Securities listed on the Exchange;
- Providing sound and rapid settlement and clearance rules and procedures through its Securities Depositary Center;
- Establishing and enforcing professional standards for brokers and their agents;
- Ensuring the financial strength and soundness of brokers through the periodic review of their compliance with capital adequacy requirements, and setting such arrangements to protect the funds and Securities in the custody of brokerage companies.
d. The Exchange shall not distribute to its members any cash or in kind distributions by way of a dividend without the approval of the Board.