CMA approves amendments to rules on offering securities, continuing obligations

The Capital Market Authority's (CMA) board approved today, Jan. 28, the amendments to the rules on the offer of securities and continuing obligations. It also endorsed the glossary of defined terms used in CMA's regulations.
 

These amendments are aimed to further regulate and develop the capital market and build an advanced capital market that has an active and pivotal role in supporting the growth and the sustainability of companies in the capital market, CMA said.
 

It added that the amendments also target enhancing the role of the market in raising capital to become an advanced market that supports the development of the national economy, and increase the efficiency of the financial sector.
 

The amendments include amending the minimum requirements for the amount paid by each offeree (other than investors under the categories of Institutional and qualified clients) in limited offers. In addition to restricting the offer of unlisted contractually based securities to the cases where all offerees are investors under the categories of Institutional and Qualified Clients, or employees of the issuer or any of its affiliates.
 

They also include amending the rules on the offer of securities and continuing obligations in alignment with the amended rules for special purposes entities in relation to the structure of the special purposes entity that offers debt instruments, in addition to a number of amendments in relation to the offering of debt instruments by the special purposes entity.
 

The amendments also include changing the rules on the offer of securities and continuing obligations regarding CMA's review period of an application for the registration and offering of debt instruments, or the registration and offering of convertible debt instruments, and requesting the approval for a financing transaction in relation to the public offering of debt instruments to be 20 days from the date of receiving all the information and documents required under the rules.