CMA Role in Regulating Disclosures and imposing penalties

  1. Rules and regulations of disclosure and transparency in MSM enjoy high level of efficiency and effectiveness in line with the best international practices and constant to the IOSCO Principles. These rules and regulations are subject to continues assessment, review and development in order to cope with the developments locally, or with practices and cases occurring in other countries.
  2. CMA seeks to achieve highest levels of efficiency in securities market by providing proper information of listed securities, and the ability of traders to obtain such information free of cost and discrimination which leads to fair pricing that accurately represents the economic value of the security for seller and buyer.
  3. CMA adopted efficient mechanisms for supervising trading operations in order to assure the absence of any illegal transactions through using undisclosed information. Surveillance departments in CMA and MSM perform momentary monitoring for trading operations. In case of noting any signs of irregular trading movement or unjustified changes in prices, these transactions are inspected and information of traders is collected to ensure the absence of undisclosed information, and if such information is used by any of the traders.
  4. CMA adopts many surveillance tools in order to assure effectiveness of rules and regulations of disclosure and the listed companies compliance with so. There are the audit and surveillance teams that continuously follows-up with the issuers’ compliance with periodic and immediate disclosure of material information according to regulations issued by CMA.
  5. Regarding publishing the violations, CMA commits to publish disciplinary decisions issued only by the Disciplinary Committee in all media. CMA publishes all decisions after the legal appeal period or after the issuance of final sentence by the Appeal Court.
  6. CMA considers reviewing these policies with regard to their practical application and to the experiences of various countries, and setting a new policy requiring publishing violations besides the investigation results in order to achieve more transparency and disclosure.
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