The Capital Market Authority (CMA) has issued a new system for listing corporate shares with the Kuwait Stock Exchange (KSE) in order to fulfill relevant Gulf Cooperation Council (GCC) requirements and rules.
The fresh system observes the best international practices for developing the Kuwaiti bourse and establishing the principles of justice, competitiveness and transparency which ensure more protection to dealers in line with Law No. 7/2010, the CMA said in a press release.
It is mainly intended to encourage shareholding companies to list their stocks with the KSE and to reactive their role in drawing more capital for financing corporate activities and broadening the scope of their shareholders, it added.
It will give the right to those companies whose shares are to be registered with the bourse to boost their capital through public subscription, thus leading up to supporting corporate activities and expansion plans, the CMA noted.
The new corporate share listing regulations will cut annual profits from 7.5 percent to five percent of the capital and slash shareholders’ equity from 115 percent of 110 percent of the capital, and boost the level of operating corporate performance so that operating revenues could make up 75 percent of companies’ total revenues, it said.
They will further grant more flexibility to those companies which cut their capital by means of giving their enough time to readjust their positions, according to the statement.
Established under Law No. 7/2010, which was adopted by the National Assembly (parliament) in February 2010, the Capital Market Authority (CMA) regulates and controls securities and ensures transparency, justice and efficiency.
Source : KUNA Kuwait News agency
