CMA LAW: Interested Persons Disclosure of Interests

Awareness Announcement

"Interested Person's Disclosure of Interests"

Kuwait, 5^th April 2015

In line with CMA's endeavour to enhance the legal awareness of traders in securities' activity, and to implement the full disclosure policy which would achieve fairness and transparency, and prevent conflict of interests, the CMA reminds traders that the interested person must notify the CMA, the Securities Exchange, and the issuer about realizing the interest within five working days from the date thereof.

The interested person is any person who has an interest that represents 5% or more in a company listed in the Securities Exchange. This interest may be direct, indirect or in alliance with others.

If the ownership of subsidiaries or associate companies of a listed company's shares collectively exceeds 5% or more, it shall be treated on the basis that it represents the interests of an interested person.

Other interests, which must be disclosed, include agreeing with others to use the voting rights resulting from the ownership of that percentage for the interest of a certain person or persons, purchasing or agreeing to purchase the percentage referred to either by future trading or agreeing to purchase it in the future, the ownership of the person whether directly or indirectly, through portfolios managed by third parties, of 30% or more of a capital of any corporate entity or holding an interest equals to such percentage if this person owns 5% or more of the capital of a shareholding company listed company in the Securities Exchange, and the person's ownership of the percentage mentioned for others whether it is for the interest of one person or more.

The interested person must notify the CMA, the Securities Exchange and the issuer of any change in this interest which exceeds half one percent of the issuer's capital within a period that does not exceed five business days from the end of the trading day in which the change reached such percentage. This notification remains an obligation when the change results in a decrease in the interest to below five percent of the capital. The person obliged for the disclosure shall be liable for any damages that may be incurred by the CMA, Securities Exchange or others as a result of not disclosing his interests according to provisions of Law No. 7 of 2010 and its Bylaw.

The CMA urges all traders in securities' activities to comply with Law No. 7 of 2010, its Executive Bylaw, and other CMA's rules and regulations to avoid committing violations and punitive accountability.

Traders and Licensed Persons can visit the Capital Markets Authority's website (www.cma.gov.kw), Kuwait Stock Exchange's website (www.kse.com.kw), and the Twitter account @cma_kwt to keep up with the Authority's latest awareness announcements.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.