Fsdp Quarterly Newsletter Q1 2025 · Page 7

 
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The Capital Market Authority and the Board of 
Grievances sign a digital linkage agreement 
The Capital Market Authority (CMA) signed a digital link 
agreement with the Board of Grievances to benefit from 
the services of the (Nafith) system in the administrative 
implementation procedures, and in order to facilitate and 
speed up business and exchange data in accordance with 
the obligations and responsibilities specified in the 
agreement, and the regulations and legislation on which 
this was based. The agreement aims to establish direct 
linkage 
and 
digital 
integration 
between 
the 
Administrative Enforcement Courts’ platform and the 
Nafith electronic platform, to facilitate the submission of 
execution requests by the administrative execution 
courts through its digital platform and send them to the 
Securities Depository Center Company and the capital 
market institutions, thus contributing to the integration 
between them. 
Public Consultation on the Proposed Amendments to 
Brokerage Companies Licensing Requirements  
The Capital Market Authority (CMA) called upon relevant 
and interested persons participating in the capital market 
to share their feedback on the proposed amendments to 
the licensing requirements for brokerage companies 
outlined in the Capital Market Law. These amendments 
focus on the minimum capital requirements and the legal 
structure that brokerage companies must adopt.  
The consultation period will last for a period of 30 
calendar days.  
The proposed amendments include referring the 
determination of the minimum capital requirements that 
brokerage companies must continuously meet to the 
implementing regulations issued by CMA, in a way that 
provides the necessary flexibility in determining the 
capital requirements according to the nature of the 
business that the brokerage companies will be licensed to 
practice. Currently, the Capital Market Law stipulates 
that the minimum capital must not be less than SAR 50 
million. The proposed amendments aim to enhance the 
attractiveness of engaging in brokerage activities 
(currently performed by capital market institutions 
licensed to carry out dealing or custody business), 
encourage competition in the field, and stimulate the 
growth of the asset management industry. This will be 
achieved by developing the services provided in dealing 
and custody activities to foster innovation and expand 
within the capital market. 
The Capital Market Authority Is Consulting Public on
the Draft Regulatory Framework to Offer of Depository
Receipts and Investment Funds 
The Capital Market Authority (“CMA") called upon 
relevant and interested persons participating in the 
capital market to share their feedback for Public 
Consultation on the Draft Regulatory Framework to the 
Offer of Depositary Receipts in the Saudi Capital Market 
(“Draft”) for a period of thirty (30) days.  
The Draft aims to introduce a new security by regulating 
the offering of depositary receipts in the Saudi capital 
market that represent shares of a foreign company. This 
shall contribute to deepening the market, enhancing its 
role 
in 
capital 
formation, 
and 
increasing 
its
attractiveness by providing additional listing options and 
diversifying investment products in the capital market. 
According to the proposed draft regulatory framework, 
the CMA will allow foreign companies to register and offer 
depositary receipts in the Saudi capital market that 
correspond to their sh