The capital market in Kuwait is one of the oldest among the GCC countries. With a promising performance in the past few years, the Kuwait Stock Exchange (KSE) started the 2017 session as the fastest growing market in the whole world.
The government of Kuwait has made several amendments to the laws and regulations governing the capital market to secure an economically robust future for the country. The sustained satisfactory performance of the KSE has brought potential investors who are looking to make huge contributions to the region.
Regulation of Capital Market in Kuwait
The laws governing the capital markets of Kuwait went through a massive change in 2010. The parliament of Kuwait introduced the Capital Markets Authority Law (CMA Law No. 7 of 2010) in 2010 which brought several changes to the system.
Under the CMA law, a new agency called Capital Markets Authority (CMA) was set up to transform the capital market to bring it at par with international standards. The independent body was also in charge of regulating the market and oversee the activities of the listed companies. The laws were developed based on the regulations implemented by the US Securities and Exchange Commission and the neighboring Gulf countries.
The CMA established administrative resolution no. 4 of 2012 which replaced the norms of articles in Chapter 8 of investment funds and provided for two more articles. There was further amendment with the enactment of Law No. 108 of 2014 which changed some of the implications of the Law No. 7 of 2010. The 2010 law went through another change with the Law No. 22 of 2015 involving the Establishment of the Capital Markets Authority and Regulating Securities Activities.
The CMA law is one of the most complicated matters in the legal landscape of Kuwait. There are several implications that are needed for its interpretation, enforcement and application. The CMA law itself contains 13 long chapters and is also connected with other regulations and laws such as the State Audit Bureau Law, Civil Law, the Companies Law, the Penal Law, Central Bank's Law and associated by-laws.
Investing in the capital market and profiting out of it requires a thorough knowledge of the market and the different applicable laws. There are different financial instruments to consider and investors also need to evaluate the effectiveness of each taking into account the market conditions.
Trustworthy Guidance and Consultation on Capital Market
Al Naqeeb and Partners serves a wide range of clients including conventional and Islamic banks, financial institutions and financial brokerage companies with their capital market needs. Our lawyers are well versed with the different laws and regulations such as CMA law, CMA and the related laws and by-laws.
We offer effective consultation on the purchase of financial instruments, securities and assets and enlighten our clients about their legal impact. Our lawyers will also represent clients in courts and appeal committees serving their interests to the end.
Our services are open to investors, ventures, issuers, borrowers and lenders and include assistance and guidance on IPOs, corporate governance, asset finance, acquisitions, debt restructuring as other issues.
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