Should the Listed Company Disclose to the Money Markets Authority and Kuwait Stock Exchange About its Insiders?
This question is answered by the capital markets lawyers’ team in RHR for advocacy and legal advices according to what is stipulated on the executive regulation of the law No.7 for the year 2010 regarding the Money markets authority establishment and security regulation law.
Firstly, what is meant by the insiders at the company listed in the Kuwait stock exchange, is anyone who could check – regarding his position – for any information or data by material effect on the listed company that are not available to the public.
The person is considered an insider at a listed company by the following cases:
- The board of directors’ members, the administrative system at the listed company and its affiliated companies, and at the main company, from those who can access the entire information related to the listed company and its clients, whether directly or indirectly.
- Any person or another entity who has a direct connection with it, also has entire information about the listed company and its clients, including – for example – the main company, the auditor, the banking and advisory agencies, the credit rating agencies, information technology companies, and the entities assigned to practice an activity related to the listed company.
The company listed in Kuwait stock exchange should prepare a list of its insiders according to the arranged form of the Money markets authority, besides, providing the authority with this list, regarding the following:
- A statement of the insiders at the listed company:
- Make contractual arrangements requiring other institutions which have accessibility to keep a staff list of the insiders who can access the entire information of the listed company and its clients.
- Make contractual arrangements requiring other institutions which have accessibility to provide the listed company upon request with a staff list of the insiders who can access the entire information related to the listed company and its clients.
- The listed company should update the list of insiders, and provide the Money markets authority, Kuwait stock exchange by this updated list, through five working days, when the next takes effect:
- When there is a change about the reason of existing an actual person in the list.
- When a non-existed person in the list becomes an insider.
- When the insider person is no longer considered to be in the list.
In the case of non-disclosure of the company about its insiders to the Money markets authority and Kuwait stock exchange or delaying disclosure about the modification edited in its insiders list, the authority is allowed to fine the violating company.
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