The insider at a publicly traded company (Company listed in stock market) is defined as any person who, by virtue of his position, has access to material information or data about a publicly traded company that was not previously available to the public.
The executive regulations of the law establishing the Capital Markets Authority and Regulating Securities Activity specified the disclosure obligations of insiders with companies listed on the Kuwaiti Stock Exchange, which are as follows:
Within five working days of taking on his duties, the insider with the listed company must disclose to the Kuwait Capital Markets Authority and the company all the shares he owns in that company, as well as his minor children who fall under his jurisdiction, in accordance with the disclosure form of the listed shares of the insider and his minor children who fall under his jurisdiction in The listed company is familiar with, either directly or indirectly.
Before completing those operations, the insider with the listed company is also required to disclose his intention to deal in the securities of the listed company, the parent company, or any subsidiary company, if those companies are listed on the stock exchange, to the compliance officer of this listed company. The disclosure should include the insider’s name, the names of his children who are covered by his mandate and intend to carry out this transaction, the position he holds with the listed company, the quantity and nature of the securities he intends to deal in, the nature of the transaction, and the date of the transaction.
The insider with the listed company is required to disclose to the Capital Markets Authority, the Kuwait Stock Exchange, immediately as well as any transaction of the listed company made thereby on the securities of this listed company or the parent company, in accordance with the disclosure form of the insider with the listed company after dealing in securities The listed company or the parent company.
The following are examples of insider dealings with a publicly traded company:
- If the listed company’s insider traded in its securities under the capacity of an agent, or trustee.
- Any legal person in which a person familiar with the listed company and his minor children who fall under his jurisdiction own up to 50% or more of the capital of that legal person, whether directly or indirectly, or controls the exercise of more than 50% of the voting rights in any General Assembly (General Meeting) for that legal person, and traded in the securities issued thereby.
- Any legal person who has traded in the listed company’s securities and one of its employees is a member of the listed company’s board of directors.
- Individuals in government or regulatory agencies who are familiar with the listed company’s internal information.
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