Capital Market Authority (Saudi Arabia)
| هيئة السوق المالية | |
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| Agency overview | |
|---|---|
| Formed | July 2003 |
| Jurisdiction | The Kingdom of Saudi Arabia |
| Headquarters | Riyadh, Saudi Arabia |
| Agency executive |
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| Website | www |
The Capital Market Authority of Saudi Arabia (CMA) (Arabic: هيئة السوق المالية) is the Saudi governments financial regulatory authority responsible for capital markets in Saudi Arabia. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister. It's responsibilities include setting and policing financial rules and regulations and developing the capital markets, this includes regulating the Tadawul, Saudi Arabia's .
Unofficially started in the early fifties and operated under its own rules until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, (16 June, 2003) which formally brought it into existence.
The CMA’s functions are to regulate and develop the Saudi Arabian Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law. The basic objectives are to create an appropriate investment environment, boost confidence, and reinforce transparency and disclosure standards in all listed companies, and moreover to protect the investors and dealers from illegal acts in the market.
The CMA is entrusted with the following duties:
The CMA is governed by a Board of five (5) full-time Commissioners appointed by the Royal Decree:
The Saudi Capital Market Law provides for the establishment of the “Saudi Stock Exchange” as a Joint Stock Company that operates as the only authorized entity to carry out the trading of securities in the Kingdom of Saudi Arabia .
The exchange operations are currently conducted through Saudi Stock Exchange (Tadawul), purporting to continuously develop a full-fledged security market that provides comprehensive and diverse financial services to compete internationally. Consistent with its mission to produce top quality and highly efficient securities exchange market products and services, the exchange constitutes to be an added advantage for all beneficiaries and participants in the market.
The Capital Market Law provides for the establishment of the Securities Depository Center solely entrusted to execute the transactions of deposit, transfer, settlement, clearing and registering ownership of securities traded on the Exchange.
The functions of the Securities Depository Center are currently operated by The Saudi Stock Exchange (Tadawul).
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