The Capital Market Authority ("CMA") Board issued its Resolution to approve the amendment of the Rules on the Offer of Securities and Continuing Obligations, and the amendment of the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, which shall be effective as of the date of their publication.

The amendments of Rules come as a part of the CMA's efforts to develop debt instruments market through providing issuers and investors with varied investment mechanisms and products to ensure boosting liquidity and deepening sukuk and debt instruments market.  

The key amendments included stipulating the conditions and requirements for the registration of debt instruments offered by way of private placement for the purpose of direct listing on the Exchange, developing the regulatory framework for convertible debt instruments, including the provisions relating to private placements of such instruments by companies listed on the Exchange, and regulating the issuance of exchangeable debt instruments, including the conditions relating to the shares for which such instruments may be exchanged.

The CMA Board's Resolution included amending the Corporate Governance Regulations and the Instructions on the Price Stabilisation Mechanism for Initial Public Offerings, to update the references to the Articles of the amended Rules on the Offer of Securities and Continuing Obligations.

This comes after the CMA has published the draft amendments to the Rules on the Offer of Securities and Continuing Obligations on its website and the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, for public consultation for a period of (45) calendar days.

It is expected that the amendments shall reflect on providing the issuers with extra channel to list debt instruments in the market, and enabling and supporting the issuers to find financing resources suit their needs and objectives, which shall result in diversifying the issuers types and available investment products in the market to serve in expanding the investors base.

The amended Rules on the Offer of Securities and Continuing Obligations, the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, the Corporate Governance Regulations and the Instructions on the Price Stabilisation Mechanism on Initial Public Offerings can be viewed via the following links:

Amended Rules on the Offer of Securities and Continuing Obligations

Amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority

Corporate Governance Regulations

Instructions on the Price Stabilisation Mechanism on Initial Public Offerings