Title: Concerning "Undeclared Interests"

The Capital Markets Authority (the Authority) draws the attention of the dealers in Kuwait Stock Exchange and all persons subject to the provisions of Law No. (7) of 2010 concerning the "Establishment of the Capital Markets Authority and Regulating Securities Activity", (the Authority's Law), to avoid the practices and the conducts punishable by the said Law, particularly those considered as manipulation when dealing in securities, like public encouragement or public recommendation for purchasing or selling certain securities if it is proved that there is an undeclared interest for the person who made such public encouragement. Pursuant to the Authority's law, undeclared interest means any concealed commission, financial return, gift or present from an issuer, a mediator, a trader, a consultant, or subscription agent in relevance with the concerned security.

The Authority's Law has stated dissuasive punishments for the above said manipulation, being imprisonment of not more than five years, and a fine of not less than five thousand Kuwaiti Dinars and not exceeding fifty thousand Kuwaiti Dinars or one of these two punishments. The Law also stipulates that the offender shall return the value of the financial interest he/she obtained or the value of the losses he/she avoided as a result of committing the crime of the said manipulation.

The Authority calls upon all the dealers in the securities activity to abide by the Authority's Law and its Executive Bylaw, and to avoid all the suspected practices that might include any activity banned by the Authority's Law. This shall help in developing an investment environment characterized with fairness, competition and transparency in the field of securities' transactions.