المملكة: The “Capital Market” amends the regulatory framework for offering certificates of deposit in the Saudi market

The Capital Market Authority has presented an update to the regulatory framework for offering certificates of deposit in the Saudi financial market, via the “Estalaa” platform, with the aim of regulating the registration and public offering of certificates of deposit in the Saudi financial market, in exchange for shares issued in a foreign country and listed on its market, or whose issuer has made the necessary arrangements for their listing. In it.

Most notable modifications

The most prominent main elements of the project are the statement of the applicability of the provisions regulating the registration and offering of shares stipulated in Chapter Four of the Rules on the Offer of Securities, and the continuing obligations to register Saudi certificates of deposit and offer them publicly.
Adding the definition of the term “Saudi certificates of deposit” to the list of terms used in the regulations and rules of the Capital Market Authority.

The Authority proposed adding the term Saudi certificates of deposit, noting that they are securities issued for the purpose of listing in the Saudi financial market in exchange for shares issued in a foreign country and listed in its market, or whose issuer has made the necessary arrangements to list them there.

Amending Article 15 of Chapter Four

The Authority also added a new proposal to amend Article 15 of Chapter Four of the Rules on the Offer of Securities and Continuing Obligations. For the purpose of clarifying the application of the provisions regulating the registration and offering of shares stipulated in the aforementioned Chapter Four to the registration and public offering of Saudi certificates of deposit.
The amendment stipulates that the registration and public offering of Saudi deposit certificates is subject to the provisions regulating the registration and offering of shares stipulated in this section “where applicable.”