PHOTO
The Qatar Financial Markets Authority (QFMA) has issued new controls for a company’s buyback of its shares with the intention of selling in a bid to develop its capital market and bolster investor confidence.
According to the QFMA, the most significant provisions of the new controls include mandatory approval from the authority to initiate a buyback.
The application must also be submitted through a form to purchase a maximum of 10% of the fully paid issued shares or to purchase the shares in excess of the ownership limit stipulated in the company’s Articles of Association within two days of the date of the issuance of the Board of Directors’ resolution approving the buyback transaction.
More details of the new controls have been listed on the QFMA website.
The announcement comes weeks after the Qatari financial market released new data, reporting significant growth in 2023, with the Qatar Stock Exchange (QSE) general index increasing by 1.4% compared to a decrease of 8.13% during 2022, and the market value of listed companies increased by about 2.7% to reach 624.6 billion riyals ($171.3 billion), according to the annual report issued by the QFMA.
(Writing by Bindu Rai, editing by Daniel Luiz)
