2022 Q3 Report En · Page 6

 
6  | 
The Capital Market Authority Publishes the Draft 
Amended Prudential Rules for Public Consultation 
As part of the Capital Market Authority's (CMA) strategic 
objectives to develop the capital market, the CMA's Board 
issued its resolution to publish the draft of “Amended 
Prudential Rules" for Public Consultation.  
The draft aims to enhance the stability of capital market 
institutions to further boost the confidence of capital 
market participants and create an attractive investment 
environment to support national economy growth. 
The main elements of the draft are updating the 
prudential requirements for carrying out any of the 
securities business, including updating the requirements 
of credit, market, operational and concentration risks. 
The Capital Market Authority Announces the Approval 
of Instructions for Shariah Governance in Capital 
Market Institutions 
The CMA's Board issued its resolution approving the 
Instructions for Shariah Governance in Capital Market 
Institutions (the "Instructions"). The Instructions aims to 
set the rules and standards for Shariah governance in 
Capital Market Institutions that provide, wholly or 
partially, products or services that are compliant with the 
rules and principles of Shariah. 
The main elements of the Instructions are as follows: 
a) Regulating the responsibilities of the board of directors 
or equivalent and the executive management in Capital 
Market Institutions that provide, wholly or partially, 
products or services that are compliant with the rules and 
principles of Shariah. 
b) Regulating the work of Shariah Committee, including 
the provisions for its formation, membership, meetings, 
and responsibilities, and defining the functions and tasks 
of the chairperson of the Shariah Committee, and the 
tasks and duties of its members. 
c) Regulating the Shariah Committee's independence and 
its reporting structure, and defining the tasks of Shariah 
compliance and internal Shariah audit functions. 
d) Regulating the procedures for the development 
process of products and services that are compliant with 
the rules and principles of Shariah. 
 
The Capital Market Authority Announces the Approval 
of Amendments to the Rules on the Offer of Securities 
and Continuing Obligations 
The CMA's Board issued its resolution to approve the 
amendment of the Rules on the Offer of Securities and 
Continuing Obligations, and the amendment of the 
Glossary of Defined Terms Used in the Regulations and 
Rules of the Capital Market Authority, which shall be 
effective as of the date of their publication.  
The key amendments included stipulating the conditions 
and requirements for the registration of debt instruments 
offered by way of private placement for the purpose of 
direct listing on the Exchange, developing the regulatory 
framework for convertible debt instruments, including 
the provisions relating to private placements of such
instruments by companies listed on the Exchange, and 
regulating 
the 
issuance 
of 
exchangeable 
debt 
instruments, including the conditions relating to the 
shares for which such instruments may be exchanged. 
It is expected that the amendments shall reflect on
providing the issuers with an extra channel to list debt
instruments in the market, and enabling and supporting 
the issuers to find financing resources suit their needs and 
objectives, which shall result in diversifying the issuers 
types and available investment products in the market to