CMA approves instructions on issuing depositary receipts outside Kingdom

The Capital Market Authority’s (CMA) board issued resolution to approve the Instructions on Issuing Depositary Receipts out of the Kingdom, which will be effective as of the date of its publication.

The move comes after the authority published the draft instructions on its website for public consultation for a period of 30 calendar days.

The instructions aim to set out the requirements and conditions for issuing depositary receipts out of the Kingdom for shares issued in the Kingdom and listed on the Saudi Stock Exchange, or shares issued in the Kingdom while its issuer making necessary arrangements for listing them on the exchange.

This further includes setting the requirements for obtaining the CMA’s approval on issuing depositary receipts out of the Kingdom and the obligations of the issuers and depositary banks in this regard.

The strategic objective is to deepen the capital market, promote its role in raising capital, and increasing market attractiveness to foreign investors.

The instructions can be viewed via following links: