Capital Market Authority

The Capital Market Authority (CMA, _ar. هيئة السوق المالية) is the organization in charge of regulating the Saudi Arabian stock exchange, Tadawul. The Capital Market Authority was established by the Capital Market Law, issued by Royal Decree No. (M/30) dated 2/6/1424 H (16th June, 2003). The CMA is a government organization with financial, legal and administrative independence. It reports directly to the Prime Minister.

The CMA functions are to regulate and develop the Saudi Arabian Capital Market. It issues the required rules and regulations for the implementation of the provisions of Capital Market Law aimed at creating an appropriate investment environment.

Duties and Authorities

The CMA enjoys authority to:

• Regulate and develop the capital market.• Protect investors and the general public from unfair and unsound practices involving fraud, deceit, cheating, manipulation and insider trading.• Achieve fairness, efficiency and transparency in securities transactions.• Develop measures to reduce the risks pertaining to securities transactions.• Develop, regulate and monitor the issuance and trading in securities.• Regulate and monitor the activities of entities subject to the control of the CMA.• Regulate and monitor full disclosure of information related to securities and their issuers.• Regulate proxy and purchase requests and public share offerings.

Stock Exchange

The Capital Market Law provides for the establishment of the Saudi Stock Exchange as a joint-stock company. The Exchange is the sole entity authorized to carry out trading in securities in the Kingdom.

The functions of the Stock Exchange are currently operated by Tadawul.

External links

* [http://www.cma.org.sa Official website of the Capital Market Authority]