The Capital Market Authority (CMA) Board of Saudi Arabia recently accepted the changed Listing Rules, which were previously published on the CMA website for 90 days in order for the general public to provide feedback.
The CMA said it has accounted for the new working rules of proposals, observations and inquiries it received from the experts, the public and all of the parties involved throughout the consultation period.
The CMA also considered the joint project that included the Saudi Stock Exchange and the CMA. The purpose of the project was to divide the functions and tasks between the two organizations. The divisions aligned with the provisions from the Capital Market Law; both of the teams will now evaluate applying the internal policies, regulations and procedures to accomplish goals that were targeted.
The new Listing Rules balance the companies and their requirements for public listing and offering on the Saudi Stock Exchange. The rules also apply to capital increase, prospectuses, financial information, disclosing material development and continue obligations from listed companies.
Additionally, the new laws are designed to manage the board’s requirements for reports, restrictions about transactions, altered debt instruments and related substantial holdings found in shares.
The changes of the Listing Rules include naming a legal adviser and a financial adviser when the capital reduction is applied. Further, disclosure of any material or information developments must be made at least 30 minutes before the trading period begins.