Business Daily Media

Men's Weekly

.

The Capital Market Authority Approves "Instructions on Issuing Depositary Receipts Out of the Kingdom"-PR Newswire APAC

  • Written by PR Newswire

RIYADH, Saudi Arabia, Sept. 18, 2020 /PRNewswire/ -- The Capital Market Authority (CMA) Board approved the "Instructions on Issuing Depositary Receipts Out of the Kingdom" which aim to set out the regulatory framework for the issuance of depository receipts out of the Kingdom of Saudi Arabia for shares issued in the Kingdom and listed in the Saudi Stock Exchange; or shares issued in the Kingdom and its issuer has made the necessary arrangements for listing them in the Exchange. These instructions come for the purpose of opening the Saudi financial market to foreign markets and contributing to build an advanced global financial market, in addition to providing additional financing methods for Saudi issuers whose shares are listed in the Exchange, or who have made the necessary arrangements for listing their shares in the Exchange.

These instructions enable the company (the issuer) to allocate a percentage of the company's shares for which depository receipts are issued, where such depository receipts will be offered and listed in a foreign financial market. Listed or non-listed Companies on emerging markets typically use depository receipts for the purpose of offering and listing in advanced foreign markets, as depository receipts contribute to increasing the efficiency of pricing the issuer's securities between the local and foreign markets. It is also one of the flexible methods for the issuer to offer securities in the currency of the foreign market.

In this regard, Mr. Bader Balghonaim, the CMA Deputy for Legal Affairs and Enforcement clarified that one of the key objectives of these instructions is to set out the regulatory framework for the issuance of depository receipts out the kingdom for shares of companies listed on the Saudi Stock Exchange, or shares for which necessary arrangements for listing in the Exchange have been made, which enables diversifying the investors base in the Saudi Stock Exchange to include foreign investors in those depository receipts out the kingdom, taking into consideration international best practices and standards.

The CMA studied all views and comments received during the public consultation, and among the views that were taken into consideration is clarifying the conditions to be met in order to enable the holder of depositary receipts, if such holder is among the categories of investors allowed to invest in the listed shares in the Kingdom, to cancel such receipts and become the holder of the corresponding shares.

Moreover, the CMA has prepared the instruction in line with the its strategic objectives and responsibilities in further developing the financial market; it also comes in line with the CMA's strategic initiative "Financial Leadership Program" to contribute in achieving the Saudi Vision 2030.

The Instructions can be viewed via the following link: Instructions on Issuing Depositary Receipts Out of the Kingdom[1]

Contact: Capital Market Authority Communication & Investor Protection Division +966114906861 +966544822226 media@cma.org.sa[2] www.cma.org.sa[3]

About CMA:

The Capital Market Authority (CMA) is the supervisory and administrative authority responsible for regulating and developing the financial market by issuing the laws, regulations and instructions necessary to implement the rules of the Capital Market Law, in order to provide the appropriate climate for achieving confidence, fairness and efficiency for issuance of securities and full disclosure of joint stock companies and protect investors from the illegal acts in the stock market.

For more information about CMA, please visit the official website: www.cma.org.sa[4].

References

  1. ^ Instructions on Issuing Depositary Receipts Out of the Kingdom (cma.org.sa)
  2. ^ media@cma.org.sa (www.prnasia.com)
  3. ^ www.cma.org.sa (www.cma.org.sa)
  4. ^ www.cma.org.sa (www.cma.org.sa)

Read more https://www.prnasia.com/story/archive/3128658_AE28658_0

The Future of Wealth Technology

“You shouldn’t need a large account balance to experience real-time investing. Technology should make that kind of access universal.” For decades...

Thryv wins national accolade at 2025 Australian Service Excellence Awards

  Thryv® (NASDAQ: THRY), Australia’s provider of the leading small business marketing and sales software platform, announced that Greg Nicolle, G...

pay.com.au unveils first-of-its-kind FX rewards feature, becoming the most flexible rewards solution for Aussie businesses

pay.com.au, the end-to-end payments and rewards platform, today announced the launch of International Payments, Australia’s first foreign exchange...

Yellow Canary partners with Celery to bring pre-payroll assurance technology to Australia

Wage underpayment headlines continue to put pressure on employers of all sizes, revealing how costly payroll mistakes can be for small and medium bu...

Brennan Bolsters Leadership to Accelerate Next Growth Chapter

In a move to further embed cybersecurity at the heart of its business strategy and deliver sovereign secure-by-design solutions for its customers, A...

How to Be Investable: Insights from Richelle Nicols, CEO of Pollinatr

Richelle Nicols is the CEO of Pollinatr, a pioneering investment and business development program designed to support and accelerate the growth of s...