Title: Announcement regarding issuance of Disciplinary Board Resolution No. (83/2023 Disciplinary Board) - (90/2022 Authority) and imposition of a fine against Rasmal Holding Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (83/2023 Disciplinary Board) - (90/2022 Authority) and imposition of a fine against Rasmal Holding Company for violating the rules of Disclosure and Transparency

For violating the following provisions:

1. The provision of Item (1) of Article (3-4-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. 
2. The provision of Item (2) of Article (3-6-1) of the same Module.

It was proven to the CMA in a strict manner that the Company, as an insider, failed to comply with the requirements of regulating the insiders’ transactions, as a result of exchange of assets executed on 29/12/2020 between (a subsidiary to another company) with Rasmal Holding Company (a subsidiary to another company), explained as follows:

- Entering into an asset swap contract and transfer of ownership of shares (valued at KWD 1,269,407) from (a subsidiary of another company) to Rasmal Holding Company (a subsidiary of another company) on December 29, 2020.
- Entering into an asset swap contract  and transfer of ownership of shares (amounting to 30,963,509 of a company’s shares valued at KWD 5,754,662) from another company (a subsidiary of another company) to Rasmal Holding Company (a subsidiary of another company) on the same aforementioned date.

This was done without Rasmal Holding Company disclosing in accordance with Appendix 6 “Corporate Insiders Disclosure Form after Dealing in Listed Company’s Shares or Parent Company’s Shares”, and also dealing during the restriction period.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Rasmal Holding Company in the amount of KWD 10,000 (ten thousand Dinars) for the two attributed violations due to correlation”. 

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.