As part of the Capital Market Authority's ("CMA") strategic objectives to develop 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 Rules on the Offer of Securities and Continuing Obligations for public consultation for a period of (60) calendar days ending on 22/12/1441H corresponding to 12/08/2020G.
Capital Market Authority aims to build an advanced capital market and playing an active and central role in meeting the economy’s financial needs. This aim highlights the importance of enhancing the Market’s role in supporting the growth and sustainability of companies
The proposed amendments to the Rules on the Offer of Securities and Continuing Obligations aim to regulate and develop the Capital Market, as well as emphasizing its role in raising capital to become an advanced market that supports the national economy development, and to increase the financial sector’s efficiency.
The draft amendments to Rules on the Offer of Securities and Continuing Obligations included proposed amendments in alignment with the draft amendments to the Authorised Persons Regulations, which had been published for public consultation, in relation to developing the client classification, requirements for Know Your Customer, client understanding of risk, and client suitability, in addition to amending the minimum requirements for the amount paid by each offeree (other than investors under the categories of Institutional and Qualified Clients) in limited offers. A number of amendments were also proposed to Rules on the Offer of Securities and Continuing Obligations in alignment with the proposed amendments to the structure of the special purpose entity that offers debt instruments that are included in the draft amendments to the Rules for Special Purposes Entities, which has been published for public consultation. In addition, number of amendments were also proposed in relation to the offering of debt instruments by the special purpose entity.
The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons through 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 and the prescribed form for providing comments can be viewed via the following link:
Draft Amendments to the Rules on the Offer of Securities and Continuing Obligations
Prescribed form for providing comments