Title: "Unlawful and Unethical Trading Behaviors and Investment Portfolio Rules for Securities" Workshop At University

Kuwait, December 6, 2023 - The College of Administrative Sciences at Kuwait University hosted an informative university workshop organized by the Capital Markets Authority. This workshop is part of the CMA's project to enhance financial inclusion and investment awareness, targeting various segments of society, including students in higher education.

Mr. Sulaiman Hamad Sulaiman Al-Mousa, the Director of Markets Surveillance Department, conducted the workshop, which witnessed prominent attendance from college students.

The workshop commenced with an overview of trading mechanisms, including an introduction to the Kuwait Securities Exchange and its electronic trading system. It also covered an explanation of various types of financial securities, particularly stocks, bonds, options, financial derivatives, and mutual fund units, as well as investment portfolio rules for securities.

The workshop then moved on to provide an overview of the distribution of listed companies on the Kuwait Securities Exchange in its primary and main markets. It also discussed trading periods on the exchange, its mechanism, and market indicators.

A substantial portion of the workshop focused on discussing improper trading behaviors, as outlined in the CMA's Law and its Executive Bylaws. Mr. Al-Mousa highlighted these behaviors and also presented the corresponding penalties and sanctions for violators, emphasizing key misconduct such as trading while in possession of or exploiting inside information, fraud, trading manipulation, and their various forms, as well as the negative consequences of deceptive trading. Following this, a detailed explanation was provided on unlawful trading practices and their different forms, highlighting key differences between legitimate and deceptive trading.

Furthermore, the concept of investment portfolios established by companies licensed by the Capital Markets Authority was explained, with a focus on the steps and procedures for creating investment portfolios by investment portfolio managers in Kuwait. Participants also gained insight into the rights and obligations of investment portfolio clients.

The workshop covered the management mechanism of investment portfolios (client management, company management, and custody) by investment portfolio managers, as well as the investment policies of investment portfolios and related matters.

Finally, the CMA's role in regulating trading, monitoring both improper trading behaviors and violations, as well as overseeing investment portfolio managers, was discussed as one of the workshop's concluding topics. The workshop ended with a Q&A session, addressing participants' inquiries.

Ends-
Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw