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Title: Minister of Commerce and Chairman of the Capital Markets Authority (CMA) Attended the CMA’s signing of an Agreement of Transferring Tasks to Kuwait Bourse Company
Al-Hajraf: Inauguration of a New Era in Managing Kuwait Stock Exchange
Kuwait, April 24, 2016 - The Capital Markets Authority has announced the successful execution of the transference plan of Kuwait Stock Exchange from the Market Committee to Kuwait Bourse Company according to the adopted mechanisms in an accurate and seamless manner.
The CMA is confident that the coming phases, which will achieve mutual objective, will be highly successful.
KSE has witnessed today signing the agreement of transferring the tasks and authorities from the Market Committee to Kuwait Bourse Company through the CMA as the first step of the transitional phase. Through such phase, Kuwait Bourse Company shall manage its tasks officially starting from April 25, 2016, which ends the authorities of the Market Committee as well as the Committee’s Decree and the KSE Manager’s Decree.
Therefore, starting from today, the authorization granted to the Market Committee by the CMA to manage its material and intellectual assets, and to conduct its administrative tasks in execution of the requirements of CMA Establishment Law No. 7 of 2010 and its amendments. The Board of the Bourse Company now replaces KSE manager in his competences which are mentioned in the Decree of the Market Establishment issued on August 14, 1983.
Starting from tomorrow April 25, Kuwait Bourse Company shall be considered the Exchange’s operator and shall fulfill the necessary requirements. It shall also fulfill the requirements of regularizing the Market’s situations by the end of next September.
The transference process was conducted with the attendance of the Minister of Commerce Mr. Yousef Al-Ali - Head of the Market Committee, Dr. Nayef Falah Al-Hajraf - Chairman of CMA Board of Commissioners & Managing Director, Mr. Khalifa Al-Ajeel - Member of the Board of Commissioners and the supervisor of the transference process, Mr. Khaled Al-Khaled - Vice Chairman of the Bourse Company Board, and KSE Manager Mr. Faleh Al-Ruqoba.
Al-Hajraf said that the privatization of KSE does not only fall within the framework of CMA Law, but it is also in line with the directives of H.H the Amir to do what is needed to regain the leading role of Kuwait, particularly the economic ones.
Al-Hajraf commended the efforts of the different work teams which accomplished the tasks efficiently and effectively. He also mentioned the important role of the Market Committee and its managers and staff since the establishment of the Exchange 30 years ago, which placed the Exchange in a leading regional position.
Al-Hjraf added that tomorrow is a crucial point in the local securities activities industry. It is a practical application of CMA’s strategic approaches as being a partner in the development process, and not just a regulator.
Al-Hajraf expressed his belief in the important role of the private sector. It shall work alongside the public sector to reach the economic expectations.
He considered the process of transferring the tasks a step towards the privatization of the Market to promote the Market’s classification and efficiency according to an ambitious plan, and to work in accordance with the international best practice.
He also said that the agreement of transferring the tasks and authorities is the result of hard efforts which lasted for months. The work started after the establishment of the Bourse Company and the formation of work teams which consist of the related parties from CMA, Bourse Company and the Market according to a plan adopted by the CMA in December 2015. The plan consists of four phases which ends in the coming December with the regularization of the Market situations and the Bourse Company, and amending the Market’s organizational structure to correspond to the Company’s structure. The CMA ensured implementing its plan on the specified time.
Clarification to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to
securities activities.
For more information, kindly contact
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@kuwaitcma.org
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