Article 146 Of Chapter 11

Section: Penalties and Disciplinary Actions

The Disciplinary Board may – after being satisfied that a violation has been committed – issue any of the following penalties:

1 - Cautioning the violator to discontinue committing the violation.

2 - Issuing a warning.

3 - Requiring the violator to re-pass pre-qualification tests.

4 - Suspending his/her activities for a period not exceeding one year.

5 - Suspension from practicing work or profession in final.

6 - Suspending the license for a period not exceeding six months.

7 - Revocation of the license.

8 - Imposing restrictions on the activity or activities of the violator; such restrictions shall be specified by the Bylaws.

9 - Canceling the voting or proxy or power obtained by the violation of the provisions of this Law.

10 - Suspending or canceling any acquisition offer or purchase transactions outside the scope of the acquisition offer if they are in violation of the provisions of Chapter 7 of this Law or the Bylaws.

11 - Prohibition of exercising voting rights for a period not more than three years by any Person who refrained from submitting any statement, or submitted an incomplete statement, or one contrary to the truth or in violation with the Law or the Bylaws.

12 - Suspending the validity of an applicable prospectus according to the provisions of this Law.

13 - Cessation of trading of a Security temporarily or suspension or cancellation of the decision to list a Security before the effective date thereof.

14 - Dismissal of a member of a Board of Directors or of a manager of one of the licensed companies or listed companies or Investment Controller or Custodian of a Collective Investment Scheme who failed to perform his/her duties as provided in this Law or the Bylaws.

15 - Imposing financial penalties that are defined according to the severity of the violation not exceeding fifty thousand Kuwait Dinars. In all cases, the Disciplinary Board may cancel all transactions related to the violation and the entailed effects, or require the violator to pay amounts equal to the benefit he/she acquired or the value of the loss he/she has avoided as a result of the violation. The amount may be multiplied if the Person repeats committing the violations.

* Article (146) is amended pursuant to Law No. 22 of 2015 Amending Some Provisions of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority & Regulating Securities Activities.