CmaBoardReleases
Title: Resolution No. (68) of 2016 Regarding Licensing Kuwait Clearing Company which Regularized its Situations Pursuant to 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 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments; and
- CMA Board of Commissioners Resolution passed in its meeting No. (21) of 2016 held on 28/6/2016.
The Following Was Resolved
Article (1)
Kuwait Clearing Company, which regularized its situations pursuant to the provisions of Law No. 7 of 2010 and its amendments, in addition to CMA resolutions and regulations issued in this regard, is hereby licensed to practice the activity of a clearing agency. It shall only provide central custody of securities and conduct settlement and clearing operations. The license term for the mentioned services shall be three years, starting from the issuance date of the CMA license certificate. The Company shall be exempted from paying the initial fee of the license for such period in respect of the licensed activities. It shall pay the fee when renewing the license for any other term(s) pursuant to the provisions of Law No. 7 of 2010 and its Executive Bylaws and their amendments.
Article (2)
The minimum paid capital and the legal form for persons licensed to practice any service of the clearing agency’s activities mentioned in the table below shall be as follows, according to the type of the licensed service:
Activity Legal Form Capital (KD)
1 Central Custody of Securities Shareholding Company 5,000,000
2 Settlements and Clearing Operations Shareholding Company 20,000,000
Article (3)
The minimum financial guarantee submitted to the CMA shall be KD eight million for the settlement and clearing operations.
Article (4)
Kuwait Clearing Company shall comply with Article (2-2-3) of Chapter Two of Module Four of the Executive Bylaws of Law No. 7 of 2010 and its amendments by 30/6/2017.
Article (5)
Kuwait Clearing Company shall comply with the transitional provisions mentioned in Resolution No. 72 of 2015 on the Issuance of the Executive Bylaws of Law No. 7 of 2010 and its amendments.
Article (4)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance, and it shall be published in the Official Gazette.
Dr. Nayef Falah Al-Hajraf
Chairman of the Board of Commissioners
Issued on: 30/6/2016