Latest news with #CapitalMarketsAuthority
Bloomberg
24-06-2025
- Business
- Bloomberg
Saudi Tech Firm Ejada to Reapply for IPO After Approval Expires
Saudi Arabian technology services company Ejada Systems Ltd. is planning to reapply with kingdom's regulator for its initial public offering, according to people familiar with the matter. The kingdom's Capital Markets Authority approved the firm's IPO plans in December, but its six-month window to list has since lapsed. Ejada will provide updated financial disclosures to the CMA when it reapplies, the people said, asking not to be identified as the information is private.
Arab Times
28-05-2025
- Business
- Arab Times
Kuwait's Constitutional Court Rejects Four Appeals on Social and Labor Laws
KUWAIT CITY, May 28: The Appeals Review Committee at the Constitutional Court on Wednesday rejected four constitutional appeals -- against the decision to grant social allowance and the laws governing employment in the private sector, rights of persons with disabilities and establishment of the Capital Markets Authority (CMA). The first appeal was filed by a female citizen against Paragraph Four of Article One of Cabinet Resolution No. 390/2001 on granting social and children allowances to employees in government agencies and wholly State-owned companies. She objected to the decision not to register her in the National Employment Support Program according to Cabinet Resolution No. 390/2001, despite meeting all the conditions. This is a violation of the principle of equality, as financial benefits are disbursed to males only, in violation of articles 7 and 29 of the Constitution. The court based its ruling to reject the appeal on the fact that the appellant failed to cite the constitutional provisions she claimed were violated, the grounds for violation and the constitutional challenges against it. In the same manner, the Appeals Review Committee did not provide evidence that it clarified these provisions before the trial court; thus, negating the ambiguity and ignorance surrounding the objection. The second appeal was filed by the owner of a treatment center, based on Article 55 of Private Sector Labor Law No. 6/2010, which defined the phrase 'the wage received by the employee.' She explained that the agreement for the worker to receive a percentage of the income as an incentive bonus entails, under the contested text, receiving this bonus twice: the first upon achieving the agreed percentage and the second upon the end of service. This is inconsistent with the principles of social justice and violates articles 16, 20 and 22 of the Constitution. The court stated in its ruling that the contested determination of an employee's wage as a share of net profits does not violate the principles of social justice, as long as the financial benefits are agreed upon between the employer and the employee. It added 'the determination and calculation of end-of-service gratuity fall within the jurisdiction of the trial court and outside the scope of the Constitutional Court's oversight.' Meanwhile, the third appeal was filed by a citizen against Paragraph Two of Article 42 of Law No. 8/2010 on the rights of persons with disabilities. He claimed that the article was subject to suspicion of unconstitutionality, as it stipulated that the length of service required for pension entitlement must be 20 years for males and 15 years for females in order for the insured or beneficiary legally charged with caring for a person with a moderate or severe disability to receive a retirement pension equivalent to 100 percent of the salary. This violates the principle of equality and entails unjustified discrimination between males and females, in violation of Article 29 of the Constitution. The court stated in its grounds for rejection that the contested text in no way discriminates between the genders. It did not limit the eligibility for a retirement pension in the circumstances specified by it to one gender or another, but rather set a condition related to the length of service of the pension claimant, setting it at 20 years for males and 15 years for females. The fourth appeal was filed by an import-export company against Articles 9-13 and 9-14 of Document Eleven of the Executive Regulations of Law No. 7/2010 on establishing the Capital Markets Authority and Regulating Securities Activity. These articles stipulate that if the mortgagee is a bank or financial institution and the debtor or mortgager is a professional client, it is permissible to agree, at the time of concluding the mortgage contract or thereafter, on the right of the mortgagee 'in the event of the debtor's failure to fulfill his obligations' to take possession of the mortgaged property, without being bound by the articles 231- 233 of the Commercial Code.
Zawya
26-05-2025
- Business
- Zawya
Kenya's financial regulators seek to boost issuers' victim compensation
Kenya's financial sector regulators are discussing a proposal to require fund managers, investment banks and stockbrokers to make full disclosures of their clients whose funds are invested in corporate bonds. This is in an attempt to improve the value of compensation to victims of distressed bond issuers and save the corporate bond market from further crisis of confidence. The customer disclosures, the regulators say, will help to ensure bondholders of collapsed or defaulting issuers receive maximum compensation. Currently, fund managers pool together resources from several clients and make investments in corporate bonds as single investments and usually in their name, without disclosing the identities of the investors. This means that in the event an issuer falls into distress, the investment will be treated as a being from a single investor—the fund manager. Therefore, in the case of the Capital Markets Authority (CMA), the fund manager's compensation will be limited to a maximum of Ksh200,000 ($1,550.38), and this has to be shared among the many investors whose resources had been pooled to invest in the bond. Assuming the fund manager collected hundreds of millions from investors and bought a corporate bond, the investors would lose heavily. The financial regulators believe if the identities of the investors in the pooled investment are disclosed, each of them can be treated as an independent bondholder and thus minimise losses.'I think this has been a very good discussion largely and a lot of progress has been made. So, I need to confirm where we are, but I think these discussions have been very helpful. They have involved, of course, all the parties under the joint financial sector regulators and I think they made very good progress,' CMA Chief Executive Wycliffe Shamiah told The EastAfrican in an interview.'The issues of disclosures are the ones we are trying to see how we can make it easier for those who are making these investments, and it has sort of been agreed,' he added. He indicated that discussion among all financial sector regulators—CMA, Central bank of Kenya, Insurance Regulatory Authority, Retirement Benefits Authority and Sacco Societies Regulatory Authority—are centered on full disclosure of the investors whose money is invested by fund managers, investment banks and brokers in bond issues.'We have learnt from experience. For instance, if you find fund manager A has put Ksh100 million ($775,193.79) in a corporate bond. This fund manager is not using money from one person. There are many people who have given him money, so when the Ksh100 million goes bust there are many people who have burnt their fingers because the money was for many investors,' said Mr Shamiah.'So what we were discussing is how we can make it so that when people are being compensated you don't just look at the fund manager alone. You have a way of the fund manager sharing with the rest of the people who are the specific investors so that each of them can be seen as a separate investor,' he added. These discussions follow public outcry over the loss of investor funds in several companies that collapsed or defaulted on their debt repayments after issuing bonds. For instance, in 2015, Chase and Imperial banks were given the go-ahead to issue Ksh4.8 billion ($37.2 million) and Ksh2 billion ($15.5 million) bonds, respectively, only for the two lenders to be pushed into receivership in quick succession by the Central Bank as a result of financial and corporate governance issues. Other companies that have in the past defaulted on their obligations in the corporate debt market include Nakumatt (collapsed), ARM Cement (in liquidation), Real People Kenya Ltd and Consolidated Bank of Kenya, which was later bailed out by the National Treasury. Attempts by the CMA to amend the deposit protection law - separating fund managers' bond investments from customer deposits and other bank liabilities to protect bondholders in case of a bank collapse -have been unsuccessful. The absence of a compensation scheme for bondholders in collapsed companies has instilled fear of investing in corporate bonds. Treasury bonds remain dominant in the Kenyan bond market, accounting for about 99.93 per cent of the debt market. As of December 31, 2024, there were five active listed corporate bond issuers on the Nairobi Securities Exchange, with the total outstanding amount of bond issues at Ksh19.5 billion ($151.16 million). These are East African Breweries Ltd (Ksh11 billion or $85.27 million), Real People Kenya Ltd (Ksh390.93 million or $3.03 million), Family Bank Ltd (Ksh4 billion or $31 million), Kenya Mortgage Refinance Company (Ksh1.1 billion or $8.52 million) and Linzi Sukuk (Ksh3 billion or $23.25 million). © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
08-04-2025
- Business
- Arab News
Saudi Arabia proposes new investment product to boost Nomu listings
RIYADH: Saudi Arabia is exploring the introduction of a new investment product in the parallel market, Nomu, to foster private sector listings through special purpose acquisition companies. The Capital Markets Authority has launched a public consultation on the proposed regulatory framework for SPACs, inviting feedback as part of its efforts to expand investment opportunities and drive market growth. This initiative seeks to address the financing needs of the economy while diversifying investment products and enhancing the depth of the capital market. Under the proposal, SPACs would be formed as joint stock companies in accordance with the provisions of the Companies Law. Their main objective would be to acquire or merge with Saudi companies that are not yet listed, in alignment with the Rules on the Offer of Securities and Continuing Obligations. In February, Fahad bin Hamdan, assistant deputy for financing and investment at the CMA, announced the authority's plans to introduce SPACs as part of its broader strategy to streamline the listing process within the Kingdom's capital market. Speaking at the Capital Markets Forum in Riyadh, Hamdan emphasized the CMA's efforts to enhance market accessibility and provide alternative pathways for companies to go public. In addition to SPACs, the CMA is also working to refine the framework for direct listings, with plans to allow such offerings on the main market, Hamdan revealed. The authority's goal is to expand the investor base in Nomu, thereby boosting supply and increasing market participation. These initiatives are part of ongoing regulatory reforms aimed at attracting both local and international investors, including collaboration with the Zakat, Tax, and Customs Authority to eliminate withholding tax on all listed securities. The authority has stated that SPACs could have a positive impact on liquidity levels by increasing the number of listings. The authority has stated that SPACs could have a positive impact on liquidity levels by increasing the number of listings. In a media release, the CMA emphasized that the proposed draft is designed to encourage private sector companies to list on the parallel market through SPACs. This, the CMA noted, would help meet the financing needs of the economy while supporting the growth and expansion of the capital market by introducing a broader range of investment products. The CMA's new public consultation on the proposed regulatory framework for SPACs outlines three key components. First, it specifies the terms for acquisitions or mergers between SPACs and target companies. Sponsors, or any affiliated investment funds, would be prohibited from holding, directly or indirectly, shares or interests in the target company. Additionally, the target company must ensure that at least 80 percent of the SPAC's funds are held in an escrow account. Furthermore, SPAC shareholders must own at least 30 percent of the target company's shares upon the completion of the transaction. Second, SPACs must be structured as joint stock companies and offer redeemable shares at the discretion of shareholders. To ensure sufficient market liquidity, the minimum post-offering capital requirement is set at SR100 million ($26.6 million). Third, SPACs would be required to complete an acquisition or merger with the target company within 24 months of their listing on Nomu. This deadline may be extended by up to 12 months with approval from the extraordinary general assembly. The draft framework also outlines specific requirements for sponsors, who must be licensed capital market institutions authorized to manage investments and operate funds. A sponsor's ownership stake must remain between 5 percent and 20 percent of the SPAC's capital throughout its lifecycle, with restrictions on the disposal of their shares during designated periods. Importantly, the sponsor and its affiliates would not be permitted to vote on the extension resolution, and the CMA must be notified of any such vote. Additionally, qualified investors would have the option to redeem their shares for a cash amount from the escrow account under certain conditions, including if they vote against a proposed acquisition or merger that is ultimately completed. If approved, SPACs would be listed on Nomu under the same rules that apply to other publicly listed companies. At least 90 percent of the capital raised in the offering must be held in a local bank escrow account, with access restricted to specific conditions defined in the proposed regulations. The CMA has invited the public to participate in the consultation by submitting feedback through its official platform. In 2024, Nomu recorded 28 initial public offerings and three direct listings, raising a total of approximately SR1.1 billion.
Zawya
13-03-2025
- Business
- Zawya
Kuwait's CMA revises appeal rules
KUWAIT CITY - The Capital Markets Authority (CMA) has issued Resolution No. 37/2025 to amend the rules related to submitting requests to appeal decisions made by the disciplinary board, as outlined in the executive regulations of Law No. 7/2010, which established the Capital Markets Authority and regulates securities activities, and their amendments, reports Al-Seyassah daily. The resolution includes an amendment to Articles 5-18 of Chapter Five in Book Three. It specifies that any individual subjected to a penalty outlined in the law may submit an appeal request to the disciplinary board after paying the prescribed fee and following the required format. Petitions must be submitted to the disciplinary board within three working days from the date of notification of the decision. The board is required to rule on the petition within five working days of its submission. The latest amendment introduces a separate form for submitting grievances against the decisions of the disciplinary board in specific cases. In addition, the CMA announced the start of preparations for launching its fourth strategic plan, which will cover the fiscal years from 2027/2028 to 2030/2031. The plan aims to establish a clear future vision for the CMA, enhance its role in the development of financial markets, and contribute to supporting the national economy.
