The Chairman of CMA’s Board of Commissioners announced that the Board discussed implementing rules, directives and procedures relevant to the capital market as prescribed by the Capital Market Law, such as rules of issuing, securities, rules of securities investment, rules of disclosure of information and the Exchange’s behavior, as well as other required rules and instructions to regulate and develop the capital market.  Such rules aim at achieving trading efficiency, enhancing transparency and providing investors with the highest degree of protection.  As a contribution to advance investors’ investment knowledge, the Board will implement an investment education and training programme aimed at propagating investment understanding within society and upgrading Saudi cadres working within the financial sectors.

The Chairman emphasized that work is in progress to develop the primary market.  In this context, implementing rules will be drawn up to regulate the issuance of securities, with the highest level of clarity so as to identify placement procedures for the newly established companies or those wishing to raise capital.  The placement of new securities in the market will be via a comprehensive prospectus that contains all information and data that concerns investors to ensure that their investments are made on correct information and data.

As for the brokerage business, the Board will issue implementing rules which describe the nature of brokerage business and terms, including selling and buying brokerage, portfolio management, providing financial advice, analyzing and publishing information, investment funds management along with other related activities.  The CMA will assist to those interested in submitting license applications.

Finally, the Chairman spelled out that the Capital Market Law, rules and regulations will be a stepping stone in regulating investment services, trading in securities and developing a capital market that will contribute to economic growth, enhance investment of national savings and direct them to economic and productive fields.