May the prospectus be published prior to the approval of the Authority?
The prospectus must not be published and made available to the public without the prior approval of the Authority.
Are there any issues do not require a prospectus?
A prospectus is not required for the issue of further securities by an issuer whose securities are already listed where:
a) the securities to be issued would increase the securities of a class already listed by no more than 10%;
b) shares issued as a result of capitalisation;
c) an employee share scheme;
d) shares issued as a result of the conversion of debt instruments convertible into shares of a class already listed; or
e) split of shares already issued.
Is a specific language required for the reports and notifications issued by the issuer, including the disclosure of the financial statements?
All announcements, notifications and reports must be in Arabic and the issuer may translate them into English. The Arabic language is the official language used to explain and interpret any and all announcements, notifications and reports. In case of contradiction between the Arabic version and the English version, the Arabic version shall prevail.
Can a person appeal the decisions or actions taken by the Authority Based on the Rules of the Offer of Securities and Continuing Obligations? And what is the process of that?
A person subject to provisions of these Rules may appeal to the Committee for the Resolution of Securities Disputes as stated in Article (25) of the Capital Market Law in respect of any decision or action that the Authority takes under these Rules.
What is market manipulation and deception?
Market manipulation means any act of or engage in manipulation, deception or misleading when trading securities. Manipulation has many forms, all aim at changing the price of a security for the benefit of a person through deceiving others. Another type of manipulation is when an investor places selling/buying orders for a security with the prior knowledge that other orders of substantially the same size, time and price for the purchase of that security will be entered; this manipulation may increase/decrease the price this security creating artificial false prices in the market. Such conduct may negatively affect other investors who are not aware of these per-arranged transactions. This conduct is prohibited as per Market Conduct Regulations issued by the Authority.
What are the manipulative and deceptive acts or practices?
The following actions shall be among those considered as manipulative or deceptive acts or practices:
a) making a fictitious trade; or
b) effecting a trade in a security that involves no change in its beneficial ownership.
Also, the following acts are among those considered as manipulative or deceptive acts or practices when committed for the purpose of creating a false or misleading impression of trading activity in a security or interest in the purchase or sale of the security, or for the purpose of creating an artificial bid price, ask price or trade price for a security:
c) entering an order or orders for the purchase of a security with the prior knowledge that an order or orders of substantially the same size, time and price for the sale of that security, has been or will be entered;
d) entering an order or orders for the sale of a security with the prior knowledge that an order or orders of substantially the same size, time and price for the purchase of that security, has been or will be entered;
e) purchasing or making offers to purchase, a security at successively higher prices or in a pattern of successively higher prices;
f) selling or making offers to sell a security at successively lower prices or in a pattern of successively lower prices; or
g) entering an order or orders for the purchase or sale of a security in order to:
• establish a predetermined sale price, ask price or bid price;
• effect a high or low closing sale price, ask price or bid price;
• maintain the sale price, ask price or bid price within a predetermined range; or
• entering an order or a series of orders for a security that are not intended to be executed.
What does a security related to inside information mean?
A security related to inside information shall mean any security whose price or value would be materially affected if the information was disclosed or made available to the public.
What is the inside information?
It is the information which:
1) relates to a security;
2) has not been disclosed to the general public, and that is not available to the general public; and
3) a normal person would realise that, in view of the nature and content of the information, disclosing it or making it available to the public would have a material effect on the price or value of the security.
What does an insider mean?
For greater certainty, insider means any of the following:
1) a director, a senior executive or an employee of the issuer of a security related to inside information;
2) a person who obtains inside information through a family relationship, including from any person related to the person who obtains the information;
3) a person who obtains inside information through a business relationship, including obtaining the information:
• from the issuer of a security related to inside information;
• from any person who has a business relationship with the person who obtains the information; or
• from any person who is a business associate of the person who obtains the information;
4) a person who obtains inside information through a contractual relationship, including obtaining the information:
• from the issuer of a security related to inside information; or
• from any person who has a contractual relationship with the person who obtains the information.
Who are the addressees of the Investment Accounts Instructions? What is the aim of these Instructions?
These instructions address authorized persons and aim to regulate the opening and operation of investment accounts held by authorised persons licensed to conduct the activities of dealing, managing, or custody; and to define the related investment accounts controls and supervisory rules.
What is an investment account?
An accounting record created by the authorised person for the purpose of the deposited client`s money in a client account opened by the authorized person to fund the client's transactions in the securities. And reflects all details of the client account.
What does Freezing of the Investment Account mean?
The temporary block of all money transfers from the investment account and usage of the investment account balance, and this does not include preventing the client from the sale of his securities, receive the proceeds and profits generated from his securities into the investment account or transfer from his bank account to the investment account.
What is an Investment Accounts Identification Cards?
Upon the client`s request, the authorised person must issue an investment account identification card for the client and provide it or deliver it to him, which shall contain the client’s name and number of the investment account as well as the authorised person's name and the branch that the investment account was opened with.
When shall an authorised person freeze investment accounts?
The authorised person must freeze all investment accounts of the clients after expiration of the validity date of the documents were provided for opening the investment account, or not adhering to the authorised person`s request to update the account`s information, in accordance with the Clause (a) of Article (14) of the Investment Accounts Instructions.
Shall an authorised person notify the client of freezing the investment account?
Yes, the authorised person must notify his clients at least 1 month before the date of freezing the investment accounts. The authorised person must also maintain policies and procedures to achieve this requirement and make record of such fulfillment.