CmaBoardReleases
Title: Resolution No. (64) of 2017 on Amending the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments
Having Perused:
- Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments; and
- CMA Board of Commissioners Resolutions passed in its meeting No. (15) of 2017 held on 12/4/2017;
The Following Was Resolved
Article (1)
Module Three (Enforcement of the Law), Module Eight (Conduct of Business), Module Eleven (Dealing in Securities), and Module Fourteen (Market Conduct) of the Executive Bylaws of Law No. (7) of 2010 are hereby amended as follows:
1- Module Three (Enforcement of the Law):
Appendix No. (1) “Procedures and Conditions of Registration in the Panel of Arbitrators and Experts” is hereby amended to be as mentioned in attachment No. (1) of this Resolution.
2- Module Eight (Conduct of Business):
a. A new appendix is hereby issued under No. (1) on “Standards of Record Keeping Systems”. It shall be added to Module Eight (Conduct of Business) as stipulated in attachment No. (2) of this Resolution.
b. All licensed persons, within the scope of application of this appendix, are hereby granted a grace period to regularize their situations and comply with the special technical requirements mentioned in the appendix, along with providing the CMA with the policies and procedures of record keeping systems by 1/6/2018, while complying with the provisions of Module Eight (Conduct of Business) of the Executive Bylaws of the above mentioned law.
3- Module Eleven (Dealing in Securities):
a. Appendices No. (2) on “Form for Incorporation of a Special Purpose Vehicle Company”, No. (3) on “Application for Purchase or Sale of Treasury Shares”, No. (4) on “Application for Preferred Shares Issue”, No. (5) on “Application for Approval of Preferred Shares Subscription Prospectus”, No. (6) on “Application for Bonds Issuance”, No. (7) on “Application for Approval of Bonds Subscription Prospectus”, No. (8) on “Application for Sukuk Issuance”, and No. (9) on “Form of Approval of Sukuk Subscription Prospectus” of Module Eleven (Dealing in Securities) are hereby amended to be as mentioned in attachment No. (3) of this Resolution.
b. New appendices are hereby issued under No. (12) on “Form of Approval of the Agenda’s Items of Bondsholders and Sukukholders Association Meeting”, No. (13) on “Form of Distributing Bonus Shares to a Shareholding Company”, No. (14) on “Application for Reducing the Capital of a Shareholding Company”, No (15) on “Application for Increasing the Capital of a Shareholding Company by Issuing Ordinary Shares”. No. (16) on “Application for Approval of Subscription Prospectus for Ordinary Shares Offer”, No. (17) on “Application for Restructuring the Capital of a Shareholding Company”, No. (18) on “Application for Employees’ Stock Options”. They shall be added to Module Eleven (Dealing in Securities) as provided for in attachment No. (4) of this Resolution.
4- Module Fourteen (Market Conduct):
Article (3-5) of Module Fourteen (Market Conduct) is hereby amended by adding a new clause under No. (11) as stipulated in attachment No. (5) of this Resolution.
Article (2)
Anything that conflicts with this Resolution shall be revoked.
Article (3)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance. It shall be published in the Official Gazette.
Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners
Issued on: 4/5/2017