CMA amends rules of securities offering, corporate announcements

The Saudi Capital Market Authority (CMA) has amended the rules of securities offering and continuing obligations, company announcement instructions, and the CMA’s glossary of defined terms used in the regulations, the market regulator said in a bourse statement.

The Saudi market regulator has also approved the amended listing rules and the amended glossary of defined terms used in the exchange rules.

The new amendments will be effective upon their publication date, except for paragraphs 1 and 3 of Article 90 of the Rules on the Offer of Securities and Continuing Obligations, which will enter into force on Jan. 1, 2020.

The CMA’s board of directors has also approved and published amendments to the instructions of book building process and allocation method in initial public offerings (IPOs), effective from the publication date.

Under the CMA decision, the limits imposed by the Capital Market Law and on foreign investments will not apply to the investments of foreign investors (of all categories, whether resident or non-resident) in the shares of the foreign issuer, which are listed on the main market, in accordance with the listing rules.

All categories of foreign investors are allowed to invest directly in the shares of the foreign issuer, which are listed on the main market, in accordance with the listing rules.

These amendments come in line with the CMA’s objectives to regulate and develop the capital market, and enhance investors confidence in the market.