How are securities such as shares, bonds, or sukuk listed… to other securities in the Boursa Kuwait?
The executive regulations of the law establishing the Capital Markets Authority and Regulating Securities Activity clarified that it is not permissible to list any security in the Kuwaiti stock exchange except after issuing a recommendation from the stock exchange and obtaining the approval of the Capital Markets Authority, and this is by submitting an application to the stock exchange, and the following will explain the procedures for submitting The application and the necessary documents with it and the decision on the application:
Request to list a security in the Kuwaiti Stock Exchange
An application for listing a security in the Kuwaiti Stock Exchange shall be submitted according to the form established by the Stock Exchange for this purpose, and a request for listing in a non-Kuwaiti Stock Exchange and a request for voluntary withdrawal from the Stock Exchange shall be submitted according to the form established by the Capital Markets Authority for this purpose.
All documents and information set forth in the rules of the stock exchange and the executive regulations of the law establishing the Capital Markets Authority must be attached to the application for listing a security on the Kuwaiti Stock Exchange. The Stock Exchange and the Authority may, at any time after receiving the request, request any additional information or documents it deems necessary for deciding on the request, and the request shall be considered as non-existent if the required information and documents are not completed within the period specified by the Stock Exchange or the Authority, as the case may be.
The Kuwaiti Stock Exchange provides the Capital Markets Authority with its recommendation regarding a request to list a security in the Stock Exchange, along with all information and documents in accordance with the rules of the Stock Exchange and the executive regulations of the law establishing the Capital Markets Authority.
Deciding on a request to list a security in the Kuwaiti Stock Exchange
The Capital Markets Authority shall decide on all applications related to listing within thirty days from the date of receiving the complete application with all information and documents in accordance with the rules of the Stock Exchange and the executive regulations of the law establishing the Capital Markets Authority. The Authority shall notify the applicant and the Stock Exchange of its decision related to listing.
The Capital Markets Authority may reject the application for listing a security in the stock exchange in the following cases:
- Failure to meet one of the conditions required according to the executive regulations of the law establishing the Capital Markets Authority or the stock exchange rules.
- If the Authority assesses this for considerations related to the state of the market or the national economy in general.
- If the Authority deems it necessary to protect the customers.
In all cases, the rejection decision must be justified, and a new application for listing may not be submitted before the lapse of six months from the date of the rejection decision. The Authority may, by a reasoned decision, postpone the decision on applications for listing or voluntary withdrawal of any security listed on the Stock Exchange if the public interest so requires. .
The Stock Exchange may, after the approval of the Capital Markets Authority, divide the market into several markets so that each market includes a number of listed securities in accordance with the standards set by the Stock Exchange and the rules related to the division of markets and the distribution of listed securities among those markets. The Stock Exchange annually reviews the division of the listed securities on the different markets It may also transfer any security from one market to another in accordance with the standards, controls and procedures set forth in the rules of the Stock Exchange.
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