The fifth book (Securities Activities and Registered Persons) of the Regulations of the Law Establishing the Capital Markets Authority and Regulating Securities Activity included regulating the transfer of the license resulting from merger operations, where the merger required the transfer of the license of securities activities from the merged company or companies to the merging or new company.
Transfer of Securities Activities License
The Capital Markets Authority issues its decision to transfer the license by granting a license to the merging or new company to practice the activities of securities granted to the company or to the merged companies, as the case may be, after the Authority issues its approval to implement the merger process, and the decisions of the General Assembly of the companies involved in the merger are published in the Official Gazette and the establishment of the new company, Provided that the license shall not be valid except from the date of annotating the merger in the Commercial Register.
Granting a specific period for the merging company to fulfill the conditions of the license application
The Capital Markets Authority grants a specific period to the merging or new company (as the case may be) starting from the date specified by the Authority to fulfill the conditions for granting a license to practice any of the securities activities stipulated in Chapter One of Book Five (Securities Activities) of the Regulations for the Establishment of the Capital Markets Authority Regulating the activity of securities.
The regulation authorized the Capital Markets Authority to cancel or suspend the license, restrict the activity, or take any other action that the authority deems appropriate in the event that the merging or new company (as the case may be) fails to submit the required documents and information within the period specified by the authority to fulfill the licensing requirements without an excuse acceptable to the authority.
Issuing the license for the merging or new company
In the event that the merging companies engage in the activity of the same securities, one license shall be issued to the merging or new company, as determined by the Capital Markets Authority in this regard.
In accordance with the regulation of the law establishing the Capital Markets Authority and Regulating Securities Activity, all licenses issued by the Capital Markets Authority for the same securities activity granted to the merged companies automatically shall be canceled as of the date of marking the merger in the commercial register.
The effect of transferring a license for securities activities on the persons registered with the Authority
Registered persons shall continue to be registered in the obligatory jobs if they transfer from the merged companies to the merging or new company (as the case may be) for the purpose of practicing the same jobs, with the same jobs they are registered with with the Capital Markets Authority.
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