What is the difference between the Capital Market Authority and Tadawul Company?
The Capital Market Authority is considered a regulatory and supervisory body that is responsible for organizing and developing the Capital Market. This is done by issuing the necessary rules, regulations and instructions to apply in order to provide the proper atmosphere for trust, fairness and efficiency in issuing securities as well as justice and full discloser in joint stock companies listed on the exchange and protect the investors in the Capital Market. CMA is a supervisory body fully independent from Tadawul. It works to make sure that the rules and regulations are applied correctly in order to organize the market. As for the Saudi Stock Exchange (Tadawul), the Council of Ministers has approved in 29-2-1428 H / 19-March-2007 to convert the Saudi Stock Exchange (Tadawul) into a Saudi joint stock company fully owned by the Public Investment Fund. It is run by a Board of Directors consists of 9 members that are appointed by a decree of the Council of Ministers, based on a recommendation by the Chairman of Capital Market Authority (CMA). The board includes a representative of the Ministry of Finance, a representative of the Ministry of Commerce and Industry, a representative the Saudi Arabian Monetary Agency, four representatives of the licensed brokerage firms (authorized persons), and two representatives of the listed companies. Tadawul is responsible for the executive and operational functions in the market. It is the only authorized body to manage the stock market and it aims to provide efficiency and justice in trading as well as transparency in listing requirements, technical trading systems, securities information systems in the market in addition to providing systems with high level of efficiency for settlements and clearing and applying the professional standards for brokers and their agents in the market.