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The Capital Market Authority (CMA) has amended the disclosure rules for companies listed on the Saudi Stock Exchange (Tadawul).
The changes, which cover corporate announcements related to financial results, capital increase and board meetings, among others, are part of ongoing efforts to conform to best practices, as well as enhance investor protection.
The CMA issued the first version of the disclosure rules in 2006, with several updates issued during the past years.
Among the latest updates, the CMA requires companies to exercise due diligence, avoid “misleading” information and provide justifications when making disclosures related to any “material development”.
“The amendments to the Instructions for the Companies Announcements come as part of CMA’s continuous efforts to develop and facilitate the disclosure procedures for companies listed on the Saudi Stock Exchange,” according to a statement.
“CMA is also keen to implement best practices related to the company’s disclosure to investors and dealers in the capital market. Thus, helping investors make informed investment decisions based on accurate and adequate information.”
The CMA said it has also amended the forms to be used for making disclosures and outlined the main elements that should be included in the announcements on the Tadawul website.
“It is anticipated that working with the amended [rules] shall lead to improving and raising the quality of listed companies’ disclosures in a way that will benefit all market participants, in addition to enhancing investor protection and raising the investor’s awareness level,” the CMA said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
