Is it permissible to transfer the ownership of securities listed on the Boursa Kuwait without the approval of the Stock Exchange?
The answer to this question is explained by the team of capital markets lawyers in the Al-Rashed, Al-Hadlaq and Al-Roudhan Group for Advocates and Legal Consultants, in accordance with the rules of the Boursa Kuwait.
The rules of the Boursa Kuwait permitted the transfer of ownership of the listed securities through the Kuwait Clearing Company without the need for the approval of the Stock Exchange in the following cases:
- Transfer of ownership due to inheritance or will.
- Transfer of ownership between spouses and relatives up to the second degree.
- Cases of transfer of ownership at the request of the General Authority for Minors Affairs, and merging of shares to the guardian or custodian.
- Transfer of ownership to and from companies licensed to engage in the activity of an investment portfolio manager for the purpose of depositing in a portfolio or transferring it from it whenever it is for the same client.
- Transfer of ownership based on a court ruling or enforceable arbitration rulings in any of the aforementioned cases.
- Transfer of ownership as a donation to the charitable third or to the charitable bodies licensed by law within the State of Kuwait.
Ownership is transferred in these cases upon a request submitted by the parties to the transaction to the clearing agency, and the clearing agency does this after verifying the applicability of one of the previous cases, ascertaining the identity and legal representation of the parties to the transaction, and the documents indicating ownership and the absence of any violations, legal restrictions or an agreement preventing from the completion of the transfer of ownership.
This also applies to the case of transferring securities from the account of individual institutions to the account of the owners of those institutions with the clearing agency, and not vice versa.
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To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).