CMA LAW: "Disclosure of Material Information"

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Disclosure of material information is a necessary mainstay for the stability of the capital markets, which achieves fairness and transparency and prevents conflict of interests and exploitation of insider information. Therefore, failure to provide disclosures or low levels thereof will result in disturbance in capital markets due to the associated high rates of risks caused by negative impact on the equality of opportunities and breach of fairness rules towards dealers in securities activity. Furthermore, lack of disclosure allows for practice of violating behaviors such as exploitation of insider information, information leakage, disclosure of secrets, and spread of rumors, which represent damage to the interests of the market, the investors and the economy.  

The Capital Markets Authority is keen to enhance the compliance of the issuers of securities listed in Kuwait Stock Exchange, and seek to minimize violations of the law, particularly in connection with disclosure of material information. The Authority emphasizes for all issuers of securities listed in Kuwait Stock Exchange that it is important to peruse the regulations on disclosure of such information and the disclosure mechanism, which was issued by the Capital Markets Authority on 5^th June 2012 in order to treat and organize the procedures for disclosure of material information by the issuers and clarification of the disclosure process. Additionally, the Authority confirms the importance of compliance with the requirements stated in such regulations to avoid accountability and enhance the rules of fairness, equality and transparency which ensure the market's stability, promotes its efficiency standards and achieves the investors’ interests.

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