CMA Announces Approval of Instructions on Issuing Depositary Receipts, abroad Saudi Arabia

As part of the Capital Market Authority’s (CMA) strategic objectives to deepen the capital market, promote its role in raising capital, and increasing market attractiveness to foreign investors, and based on the Capital Market Law issued by Royal Decree No. (M/30) dated 02/06/1424H, the CMA Board issued its Resolution to approve the Instructions on Issuing Depositary Receipts out of the Kingdom (“Instructions”), to be effective as of the date of their publication.

This comes after CMA has published the draft Instructions on its website for public consultation for a period of (30) calendar days.

The Instructions aim to set out the requirements and conditions for issuing depositary receipts out of the Kingdom for shares issued in the Kingdom and listed in the Exchange, or shares issued in the Kingdom and its issuer has made the necessary arrangements for listing them in the Exchange.

This includes setting the requirements for obtaining the Authority’s approval on issuing depositary receipts out of the Kingdom, and the obligations of the issuers and depositary banks in this regard.