Issuance Of The Board Resolution To Approve The Amended Rules for Qualified Foreign Financial Institutions Investment in Listed Securities

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As part of Capital Market Authority's ("CMA") strategic objectives to develop the capital market and to expand the institutional investments, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, and based on the Rules for Qualified Foreign Financial Institutions Investment in Listed Shares issued by the Board resolution Number (1-42-2015) Dated 15/7/1436H corresponding to 4/5/2015G amended by Resolution of the Board of the Capital Market Authority Number (3-104-2016) Dated 5/11/1437H Corresponding to 8/8/2016G. The CMA Board has issued its Resolution dated 22/4/1439H corresponding to 9/1/2018G approving The amended Rules for Qualified Foreign Financial Institutions Investment in Listed Securities ("Rules"), and will enter into force starting from 6/5/1439H corresponding to 23/1/2018G.

 

It is worth mentioning that the amendment on paragraph (b) of Article One of the Rules will be applied starting from 15/7/1439H Corresponding to 1/4/2018G.

 

Exception to the entry into force date of the Rules stated above, the provision of paragraph (b) of Article (1) of the Rules shall not become effective before 15/7/1439H Corresponding to 1/4/2018G. Moreover, paragraph (b) of article (1) of the Rules amended by Resolution of the Board of the Capital Market Authority Number (3-104-2016) Dated 5/11/1437H Corresponding to 8/8/2016G shall be valid until 14/7/1439H Corresponding to 31/3/2018G.

 

This is in addition to deleting sub-paragraphs (1) and (2) of paragraph (c) of the Investment Accounts Instructions issued by the Board of the Capital Market Authority Pursuant to its Resolution Number (4-39-2016) Dated 25/6/1437H corresponding to 3/4/2016G.The purpose of these Rules is to set out the procedures, requirements and conditions for qualifying foreign investors to invest in listed securities, and to specify their obligations and the obligations of authorised persons in this regard. taking into consideration all recommendations, observations and opinions, received from investors, specialists, and interested parties during the public consultation.

 

The amended Rules can be viewed on CMA's website via the following link:​

 

​Rules for Qualified Foreign Financial Institutions Investment in Listed Securities​

 

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