Saudi CMA plans to ease regulations for Nomu Parallel market

The Capital Market Authority (CMA) plans to ease investment regulations for the Nomu Parallel Market to investor interest and liquidity, sources familiar with the matter told Argaam.

Terms will be amended so that a retail investor’s net assets should be at least SAR 5 million, and that the person should hold a professional degree in the stock market or have a three-year experience in the field of investment.

In comparison, the current investment terms stipulate that an individual should have executed not less than 10 market transactions at a total value of at least SAR 40 million in each quarter over the last year; the retail investor should have a securities portfolio of SAR 10 million minimum over the past 12 months, and should also hold a CMA-approved degree in the field.

The Saudi Stock Exchange (Tadawul) launched the Nomu Parallel Market on February 26 earlier this year. Non-resident foreign investors will be allowed to invest in the parallel market as of January 1, 2018.