Capital Markets Authority Law
State of Kuwait · 160 stored articles
Article index
Search statutory textsArticles 1 – 5049
- Article 2An independent public authority possessing legal personality shall be established, supervised by the Minister of Commerce and Industry, called the Capital Markets…
- Article 3The Authority aims at the following:- 1 - Regulating securities activity in a manner characterized by fairness, competitiveness, and transparency. 2 - Developing capital…
- Article 4The Authority's Board of Commissioners shall have the following powers: 1- Issuing the regulations and instructions necessary to implement the Law, and working to issue…
- Article 5The Authority shall undertake all acts necessary to achieve its objectives, in accordance with the provisions of this Law, and in particular the following: 1 -…
- Article 6The Authority shall be managed by a board called the Commissioners of the Capital Markets Authority, consisting of five full-time commissioners whose appointment shall…
- Article 7A commissioner must be a Kuwaiti natural person of integrity, possessing experience or specialisation in fields related to the Authority works, and must not have been…
- Article 8The Chairman shall represent the Authority before third parties and before the judiciary. He shall perform the work of the executive director and implement the…
- Article 9If the Chairman is absent or his office becomes vacant, and the Vice-Chairman is unable to perform his duties for any reason whatsoever, the Board shall meet within two…
- Article 10A commissioner’s term of membership shall be four years, renewable for one term, except for members of the first Board of Commissioners, only three of whom may have…
- Article 11The salaries and remuneration of the President, his deputy and the remaining Commissioners, and any allowances or benefits paid from the Authority's funds, shall be…
- Article 12The Board shall meet at least eight times a year upon an invitation from the Chairman or upon a request by at least two Commissioners.
- Article 13A meeting of the Board of Commissioners shall be valid if attended by a majority of the Commissioners, provided that the President or his deputy is among them, except…
- Article 14The Board may establish permanent or temporary advisory committees and entrust them with studying a particular matter within its competences specified in this Law. It…
- Article 15A committee for receiving complaints and grievances shall be organized within the Authority. Any interested party may submit to it a complaint concerning any error…
- Article 16Subject to Article Two of Amiri Decree No. 12 of 1960 concerning the Law Regulating the Department of Legal Opinions and Legislation, Government of Kuwait, the Authority…
- Article 17The Board of the Authority shall establish the administrative and financial regulations governing the affairs of the Authority's employees without being bound by the…
- Article 18The Authority shall have an independent budget issued by law and prepared in accordance with the rules specified by the Executive Regulations, subject to the provisions…
- Article 19The Authority's financial resources shall consist of the proceeds of fees prescribed by this Law and its regulations and collected for the Authority's account, the…
- Article 20Any money owed to the Authority by third parties shall be considered public funds and shall receive the same treatment as debts owed to the Public Treasury, and shall be…
- Article 21The Authority shall have cash reserves ensuring its long-term financial stability to meet the typical risks expected to occur in securities activity. The amount of these…
- Article 22The Authority shall maintain appropriate books of account and records relating to its revenues, expenditures, assets, liabilities and all transactions pertaining to the…
- Article 23Without prejudice to the subsequent oversight of the State Audit Bureau over over the Authority, the Authority shall not be subject to the prior oversight of the State…
- Article 24Without prejudice to the provisions of this Law, the Authority is prohibited from carrying out any commercial activity, and it may not lend money or issue or invest in…
- Article 25The Authority shall submit to the competent Minister an annual report, to be forwarded to the Council of Ministers within 120 days of the end of each financial year,…
- Article 26No commissioner or employee of the Authority invited to a meeting within the Authority’s competence, who has a direct or indirect interest in the matter presented for…
- Article 27Commissioners and employees are prohibited, while he holds employment at the Authority, from undertaking any commercial work on his own behalf or in his capacity as an…
- Article 28Every member of the Board and every employee shall declare in writing to the Authority, immediately upon Law Index 1348 Home Page Capital Markets Authority Law Law No. 7…
- Article 29Any commissioner, employee, or person working on the Authority’s committees or with it, with or without remuneration, must maintain the confidentiality of information…
- Article 30The employees of the Authority designated by a decision of the competent Minister shall have the capacity of judicial officers in establishing offences committed in…
- Article 31A securities exchange means the market competent to match offers to sell and requests to purchase securities, which follows the procedures specific to trading and…
- Article 32No person may establish or operate, or assist in establishing or operating, a securities exchange except after obtaining a licence under this Law and in accordance with…
- Article 33The Authority shall grant a stock exchange licence to a joint-stock company that replaces the Kuwait Stock Exchange. The capital of this company shall be determined by a…
- Article 34The Exchange shall, after the Authority's approval, establish the procedures, rules and systems that the licensed Exchange must follow for trading and transferring…
- Article 35The following conditions are required of a member of the Exchange's board of directors and for continued holding of that position: - 1 - He must not have previously been…
- Article 36The Exchange shall be managed by a board of directors composed of a chairman and and a vice-chairman, who shall replace him in his absence, and six members elected and…
- Article 37The chairman of the board of directors shall represent the exchange before third parties and the courts, in addition to the other powers specified in the memorandum and…
- Article 38The Exchange must do the following: 1 - Ensure the existence of a securities market characterized by fairness, transparency and efficiency. 2 - Ensure the existence of…
- Article 39The exchange company shall promptly notify the Authority of the following: 1 - If it becomes apparent to it that one of its members is unable to comply with any of of…
- Article 40The Authority's Board of Commissioners may request the Exchange to prepare specific rules within its field of work or to amend them within a specified period. If the…
- Article 41No rules issued by the Exchange, or any amendment thereto, whether by withdrawing, replacing, changing, or adding to them, shall take effect unless approved by the…
- Article 42A committee shall be formed at the Exchange with competence to consider violations committed by any member of the Exchange. The Authority shall issue the instructions…
- Article 43The Exchange's management must notify the Authority of any disciplinary action it takes against any of its members, the details of the violation he committed, the…
- Article 44In cases of disasters, crises, and disturbances that may create severely harmful effects in the market, as well as where some traders engage in misleading suggestions or…
- Article 45If the exchange fails to comply with the Authority's decisions or instructions issued pursuant to its powers prescribed in the preceding Article, the Authority may take…
- Article 46The Authority may, by written notice to the Exchange, revoke the licence granted to it effective from the day specified in the Authority's decision, in the following…
- Article 47The Authority may, on its own initiative, grant the company a specified period, or extend the period granted to it beyond the date of revocation of the licence, if the…
- Article 48A clearing agency means any legal entity that undertakes settlement and clearing between persons trading in securities with respect to payment or delivery or both, and…
- Article 49No person may establish or manage a clearing agency, assist in its establishment or management, or advertise its doing so, except after obtaining a clearing agency…
- Article 50A clearing agency licence may be granted only to a joint-stock company that determines the capital of the Board of Commissioners, and its activity shall be a clearing…
Articles 51 – 10046
- Article 51The clearing agency shall comply with the following obligations: 1 - Taking fair and fully effective clearing and settlement measures in respect of any commercial…
- Article 52The clearing agency must promptly notify the Authority of the following: If it becomes apparent to it that any person dealing with it is unable to comply with any of the…
- Article 53The Authority shall request the clearing agency to prepare rules and regulations relating to clearing and settlement operations, registration of securities and other…
- Article 54No rules issued by a clearing agency, or any amendment thereto, whether by withdrawal, replacement, alteration, or addition thereto, shall take effect unless approved by…
- Article 55The clearing agency may, if a participant fails to comply with the clearing rules, require him to pay the fees resulting from his failure to comply with those rules.
- Article 56The Authority may issue instructions to the clearing agency to ensure the fair, orderly and appropriate settlement of transactions in securities, and to ensure the…
- Article 57In cases of disasters, crises, and disturbances that may create severely harmful effects in the market, the Authority may issue instructions to amend or suspend the…
- Article 58If the clearing agency fails to comply with the Authority’s decisions or instructions issued pursuant to its power prescribed in the preceding table, the Authority may…
- Article 59The Authority may, by written notice, revoke the clearing agency licence granted to it in accordance with the provisions of this Law, effective from the day specified in…
- Article 60The Authority may grant the clearing agency a specified period or extend the period beyond the date of cancellation of the licence if the Authority considers this to be…
- Article 61The agency may submit a grievance to the Authority against the decision revoking its licence within fifteen days from the date it is notified thereof in writing or from…
- Article 62When any person becomes subject to the provisions governing insolvency, bankruptcy, or liquidation, or when a judicial receiver is appointed over his assets, the…
- Article 63No person may engage in any of the activities set out below except after obtaining a licence from the Authority specifying the activity or activities licensed: 1-…
- Article 64No person may act as a representative of a licensed person or claim to do so except after obtaining the Authority’s approval and licence.
- Article 65The Authority may require persons licensed to engage in securities activity to submit periodic reports to it on all their business, including an annual report on the…
- Article 66A person licensed to engage in the management of securities activity must comply with the controls specified by the Regulation, in particular the following: 1 -…
- Article 67The Authority may refuse, suspend or revoke a licence, or restrict the activity of any person licensed to engage in the management of securities activities, or any…
- Article 69Every person licensed to use an internal control system must comply with the following: 1 - Execute transactions pursuant to general or specific authorization from the…
- Article 70Every licensed person must, within one month of obtaining the licence, promptly appoint an auditor approved by the Authority, provided that this auditor is not a…
- Article 71A takeover offer means an offer, attempt or request to acquire: 1 - All shares of a listed company or all shares of any class or classes within a listed company, other…
- Article 72A person wishing to submit a takeover offer shall provide a copy of the offer documents, accompanied by the essential data and information, to each of the Authority, the…
- Article 73The Authority shall include in the Executive Regulations the rules governing the acquisition by any person of a percentage of not less than 5% and not more than 30% of…
- Article 74A person shall, within thirty days of directly or indirectly acquiring ownership exceeding 30 of the traded securities of a listed shareholding company, proceed to…
- Article 75The issuer whose securities are subject to acquisition shall, within seven business days of receiving the offer, submit to the Authority a response stating its opinion…
- Article 76A collective investment scheme means any of the following forms: 1 - An investment fund having legal personality. 2 - A contractual collective investment scheme relating…
- Article 77The securities or units of a collective investment scheme may not be managed or sold unless it is licensed by the Authority in accordance with the rules, regulations and…
- Article 78The Regulations shall specify the requirements necessary for establishing and managing collective investment schemes, their approved forms, the functions required within…
- Article 79Participants are entitled to redeem their own units in the collective investment scheme in accordance with its constitutional or contractual rules.
- Article 80An investment fund whose establishment has been licensed by the Authority may be listed on the Exchange. Investment funds established outside the State of Kuwait which…
- Article 81Every person acting as an adviser to a collective investment scheme must comply with the following matters: 1 - To be licensed by the Authority to act as an investment…
- Article 82Collective investment schemes are prohibited from undertaking any of the following: 1 Granting credit. 2 - Purchasing any security issued by the company managing the…
- Article 83The manager or custodian of a collective investment scheme may not be replaced except after the Authority approves this. The Authority shall notify the applicant of its…
- Article 84The manager of a collective investment scheme may not make any amendments to the contract or articles of association except after the Authority approves those…
- Article 85The Authority may revoke the licence of any collective investment scheme in any of the following circumstances: 1 - If it becomes apparent that any of the conditions for…
- Article 86The Authority may notify the manager, investment controller or custodian of a collective investment scheme in writing of its intention to revoke the scheme’s licence and…
- Article 87If the Authority issues a decision revoking the licence of a collective investment scheme, it must appoint a licensed person to undertake the liquidation of the scheme,…
- Article 88The Authority may, upon an application submitted to it, authorize the marketing of a collective investment scheme established outside the State of Kuwait. The Executive…
- Article 89The Authority may revoke the marketing authorisation for a collective investment scheme established outside the State of Kuwait in any of the following cases:- 1 - If it…
- Article 90If it becomes apparent to the Authority that the manager, investment controller, or custodian of a collective investment scheme is not complying with the provisions of…
- Article 94The subscription prospectus shall become effective after thirty days have elapsed from the date it is submitted to the Authority complete with the required documents,…
- Article 95The Authority may reject the prospectus in any of the following cases: 1 - The prospectus does not conform to the provisions of this Law and the Executive Regulations. 2…
- Article 96The prospectus for subscription to the company's shares upon its incorporation must include disclosure of the information stipulated in the aforementioned Commercial…
- Article 97Companies listed on the Exchange shall disclose their financial statements in accordance with the regulations issued by the Exchange and approved by the Authority.
- Article 98The Authority may require the Exchange to take every measure that would expedite disclosure by companies whose securities are listed thereon of any material changes that…
- Article 99The public shall be permitted, against fees determined by the Authority, to inspect at the Exchange or obtain copies of prospectuses, periodic reports, information and…
- Article 100A beneficial owner means anyone who has an interest representing five percent 5% or more of the capital of a company listed on the exchange, whether directly or…
Articles 101 – 15050
- Article 101The beneficiary shall, within a period not exceeding five working days from the acquisition of the interest, send a certified statement signed by him to the Authority,…
- Article 102The Authority and the exchange on which the securities are traded must be notified of any change in the interest subject to disclosure exceeding one-half of one percent…
- Article 103The Authority shall establish the instructions and rules governing disclosure and dealings in securities by insiders, as well as members of companies’ boards of…
- Article 104The Authority shall establish the instructions and rules governing listed companies' disclosure of material information.
- Article 105Every listed joint-stock company must maintain a special register of disclosures by members of boards of directors, executive management and managers, containing all the…
- Article 106The exchange on which the security is listed shall announce the information it has received concerning disclosures immediately upon receiving the information, in the…
- Article 107The person obliged to disclose shall bear liability for any damage sustained by the Authority, the Exchange, or third parties as a result of their failure to disclose…
- Article 108A court called the Capital Markets Court shall be established at the Court of First Instance. Its seat shall be determined by a decision of the Minister of Justice with…
- Article 109Judicial documents and summonses issued by the investigator or the court shall be served upon the accused through the competent representatives of the Capital Market…
- Article 110As an exception to the rules concerning service of judicial documents provided for in the Civil and Commercial Procedure Law, judicial documents relating to the civil,…
- Article 111As an exception to the provisions of Articles 49, 59, 91 of the Civil and Commercial Procedure Law, the following shall be observed: 1 - A judgment must be rendered, at…
- Article 112A criminal circuit and one or more non-criminal circuits specialized in hearing Law Index 1366 Home Page Capital Markets Authority Law Law No. 7 of 2010 Concerning the…
- Article 113When judgments are challenged by opposition or appeal, the president of the competent court shall set a hearing to consider the challenge, which shall be recorded in its…
- Article 114A special prosecution office called the Capital Market Prosecution Office shall be established and shall have exclusive jurisdiction over investigation, disposition and…
- Article 115Both the Market Authority and the Stock Exchange Administration shall execute the orders of the investigation authorities and the court and assist them in searching for…
- Article 116The non-criminal circuits of the Court of First Instance shall, of their own motion, refer the actions pending before them that have come within the jurisdiction of the…
- Article 117Without prejudice to the measures prescribed in this Law or any more severe penalty provided for in another law, painful acts under this Law shall be punished by the…
- Article 118Any insider who sells or purchases a security while in possession of inside information concerning it, discloses inside information, or gives advice based on inside…
- Article 119Any person subject to the provisions of this Law who discloses a secret that came to his knowledge by virtue of the nature of his work, employment or position shall be…
- Article 120A fine of not less than ten thousand dinars and not exceeding one hundred thousand dinars shall be imposed on anyone who omits, conceals, or withholds information having…
- Article 121Anyone who violates any of the provisions of Chapter Ten concerning disclosure of interests shall be punished by a fine of not less than one thousand dinars and not more…
- Article 122Anyone proven to have intentionally committed any of the following acts shall be punished by imprisonment for a term not exceeding five years and a fine of not less than…
- Article 123Anyone who violates any provision contained in Chapter Seven of this Law concerning acquisitions and the protection of minority rights shall be punished by a fine of not…
- Article 124Any person proven to have a disclosed interest who publicly encouraged or recommended the purchase or sale of a particular security shall be punished by imprisonment for…
- Article 125Every person who claims, contrary to the truth, that the Authority has taken any measure or decision which it has not in fact taken shall be punished by a fine of not…
- Article 126A fine of not less than five thousand dinars and not exceeding fifty thousand dinars shall be imposed on anyone who: Practised a particular activity or profession…
- Article 127Anyone who commits an act liable to obstruct investigations or any supervisory activity of the Authority or its employees shall be punished by a fine of not less than…
- Article 129The court may issue an order against anyone convicted of any of the offences provided for in this Law, temporarily or permanently disqualifying him from serving as a…
- Article 130The Capital Market Court may go below the minimum term of imprisonment it imposes for the offences stipulated in this regard, without being bound by the provision of the…
- Article 131The Authority may, at any stage of the criminal proceedings and until a final and unappealable judgment is issued therein, offer or accept a settlement with any person…
- Article 132The Public Prosecutor may, by his decision or upon a request from the Authority or the employing entity, if the interests of the investigation so require, temporarily…
- Article 133If the Public Prosecutor has gathered sufficient indications concerning a person or group of persons that he has committed an act criminalized under this Law, or upon a…
- Article 134The Public Prosecutor shall decide on the Authority's request provided for in the preceding Article within twenty-four hours of its submission. If the request is…
- Article 135The value of the assets placed under restraint may not exceed the value of the maximum financial penalty that may be imposed on the accused. The Public Prosecutor or the…
- Article 136The Public Prosecutor or the court may, upon a request from the Authority or any interested party, lift the precautionary measures if the accused provides sufficient…
- Article 137Where the accused is prohibited from managing his assets, the Public Prosecutor must appoint a manager to manage the assets whose management has been prohibited, upon a…
- Article 138The filing of a report, the Public Prosecution's conduct of an investigation, and the institution of criminal proceedings shall not preclude the Authority's right to…
- Article 139Every act that contravenes the provisions of this Law or any system, regulation, decision or instructions issued by the Authority within the framework of this Law shall…
- Article 140One or more Disciplinary Boards shall be established within the Authority, composed of three members and chaired by a judge seconded by the Supreme Judicial Council,…
- Article 141Any member of the Disciplinary Board is prohibited, while performing his duties, from having any interest, whether direct or indirect, with any entity subject to the…
- Article 142The Authority's Legal Department shall undertake administrative investigation of the violations set out in this Law and its Regulations and referred to it by the…
- Article 143If investigations reveal evidence that a violation has been committed, the Authority may refer the violator to the Disciplinary Board in accordance with the rules and…
- Article 144Any person under investigation or appearing before the Disciplinary Board shall have the full right to defend himself, and may appoint any lawyer to defend him.
- Article 145The person complained against shall be notified of the facts attributed to him and their supporting grounds and of the date of his investigation hearing at least seven…
- Article 146The Disciplinary Council may—after verifying the violation—impose any of the following sanctions: 1 - Admonishing the violator to cease committing the violation. 2 -…
- Article 147Any person against whom a sanction stipulated in this Law has been imposed may submit a written grievance against it to the Authority within fifteen days from the date…
- Article 148Disputes arising from the obligations prescribed in this Law or any other law may, if they relate to capital market transactions, be settled through the arbitration…
- Article 149The Authority may exchange information and documents relating to violations in securities matters between the Authority and similar entities and authorities in other…
- Article 150All data and information relating to the work of the Authority shall be confidential and may not be disclosed except with the Authority’s approval or pursuant to an…
- Article 150 مكررWithout prejudice to the tax exemptions prescribed for profits from the disposal of securities issued by companies listed on the securities market, returns on…
Articles 151 – 20015
- Article 151A decree naming the members of the Board of Commissioners shall be issued within three months from the date of issuance of this Law.
- Article 152The Authority must issue the Executive Regulations of this Law within six months from the date of issuance of the decree appointing the Board of Commissioners, and they…
- Article 153As an exception to the provisions of Article 164, the provisions of Decision No. 2 of 1984 establishing the Arbitration Committee and the rules and procedures followed…
- Article 154Under the provisions of this Law, the current Kuwait Stock Exchange shall be deemed a licensed securities exchange. It shall regularize its status in accordance with…
- Article 155The supervisory functions prescribed in this Law shall be transferred to the Authority within six months from the date of publication of the Executive Regulations,…
- Article 156All tangible and intangible assets of the Kuwait Stock Exchange shall devolve upon the Authority upon issuance of this Law. The Market Committee shall continue to manage…
- Article 157Without prejudice to the employment statuses prescribed for employees of the Kuwait Stock Exchange on the date this Law enters into force, these employees shall continue…
- Article 158Under the provisions of this Law, the Kuwait Clearing Company shall be deemed a licensed clearing agency. The Company shall bring its position into conformity with the…
- Article 159Under the provisions of this Law, the financial broker licensed on the Kuwait Stock Exchange shall be deemed a financial broker licensed on the Exchange. The broker…
- Article 160Pursuant to the provisions of this Law, all securities listed on the Kuwait Stock Exchange shall be deemed listed on the Exchange. Law Index 1375 Home Page Capital…
- Article 161Investment funds authorized under Decree-Law No. 31 of 1990 shall be deemed licensed under the provisions of this Law and its Executive Regulations, and must regularize…
- Article 162Investment companies registered with the Central Bank of Kuwait that engage in managing the funds of others and are licensed for investment management shall be…
- Article 163First: - Upon completion of the transitional phases referred to in this Law, the following laws, decree-laws and decrees shall cease to apply: - 1 - The Decree issued on…
- Article 164This Law shall be considered a special law, and its provisions shall be considered special provisions. Every provision in a general or special law that conflicts its…
- Article 165The Prime Minister and the Ministers shall implement this Decision, and it shall be published in the Official Gazette. Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah…