Cases In Which The Capital Markets Authority May Suspend Trading In The Kuwait Stock Exchange

What are the cases in which the Capital Markets Authority may stop trading in the Kuwait Stock Exchange?

The answer to this question is given by the team of capital and equity market lawyers at Al-Rashed, Al-Hadlaq and Al-Roudan Group for Advocates and Legal Consultants.

On February 14, 2021, the Capital Markets Authority issued Resolution No. 15 of 2021 regarding the amendment of some provisions of the executive regulations for the protection of dealers in companies whose financial statements are questionable. The resolution included the amendment of Article No. (1-18) of Book Twelve (Listing Rules) that identifies cases in which the Capital Markets Authority may stop trading in the Kuwait Stock Exchange. These cases will be shown in accordance with what was stated in the amendment:

The Capital Markets Authority may temporarily suspend trading in the stock exchange and suspend the trading of any security listed on the stock exchange, in the following cases:

  1. The issuer’s violation of any of the obligations imposed on it under the laws and regulations in force with the Authority and the Stock Exchange.
  2. Disasters, crises and disturbances that may create severe adverse effects on the market.
  3. Protection of dealers in the markets.
  4. The issuer’s failure to provide any data or documents requested by the Authority, within the scope of its supervisory competencies.
  5. The auditor expressing a fundamental conservative opinion on the interim or annual financial statements, or in the event of termination of the contract with the auditor due to a dispute between the listed company and the auditor.