In force Last amended 19/1/1441 AH
Saudi Capital Market Law
نظام السوق المالية
The Capital Market Law covers the Capital Market Authority and its powers, the securities market and its objectives, the securities dispute resolution committee, the securities depository center, regulation of intermediaries, portfolio managers and investment funds, and fraud and manipulation in trading.
- Articles
- 68
- In force
- 68
- Amended
- 26
- Issued
- 2/6/1424 AH
Issued by: مرسوم ملكي رقم م/30 بتاريخ 2 / 6 / 1424 · قرار مجلس الوزراء رقم 91 بتاريخ 16 / 4 / 1424
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Capital Market Law by topic
Securities and Their Definitions5 articlesCapital Market Authority and Its Powers17 articlesSaudi Stock Exchange3 articlesSecurities Depository Center1 articleSecurities Disputes1 articleSecurities Brokerage4 articlesInvestment Funds and Portfolio Managers2 articlesOffering Prospectus and Offering Securities7 articlesDisclosure and Periodic Reports8 articlesManipulation and Insider Trading3 articlesTakeovers and Share Purchase Offers3 articlesCompensation for Securities Losses3 articlesPenalties for Capital Market Violations2 articles
Articles of the Saudi Capital Market Law
- Article 1يقصد بالكلمات والعبارات الآتية، حيثما وردت، المعاني الموضِّحة لها ما لم يقضِ سياق النص بغير ذلك : المملكة : المملكة العربية السعودية .…Amended M/16
- Article 2The article defines securities under the Capital Market Law: shares, tradable debt instruments, investment fund units, profit and asset distribution rights, and what the Authority's Board adds.
- Article 3The article excludes from securities checks, bills of exchange, promissory notes, documentary credits, money orders, interbank instruments and insurance policies.
- Article 4The article establishes the Capital Market Authority, linked to the Prime Minister and independent financially and administratively, and prohibits it from trading, borrowing, lending or owning securities.
- Article 5أ - تكون الهيئة هي الجهة المسؤولة عن إصدار اللوائح والقواعد والتعليمات، وتطبيق أحكام هذا النظام. وفي سبيل ذلك تقوم الهيئة بما يأتي : 1 -…Amended
- Article 6أ - تتولى الهيئة صلاحية تنفيذ المهام المنصوص عليها في هذا النظام، وكذلك اللوائح والقواعد والتعليمات الصادرة بمقتضاه ويدخل في ذلك على سبيل…Amended M/16
- Article 7The article regulates the composition of the Capital Market Authority's Board of five members appointed by royal order, their terms, and its powers over internal regulations, delegation and review of delegated decisions.
- Article 8The article requires Authority employees and Board members to disclose, upon assuming their duties, their securities and their relatives', and any change within three days.
- Article 9The article prohibits Authority Board members and employees from any other profession or work, from holding a post at any entity, and from advising private companies.
- Article 10The article regulates meetings of the Capital Market Authority's Board: a call by the chairman, a quorum of three members including the chairman or vice chairman, majority decisions, and remote voting in emergencies.
- Article 11The article makes the chair of the Capital Market Authority's board its chief executive, responsible for running it, carrying out the board's decisions, signing its documents and handling its administrative and financial affairs.
- Article 12The article has the vice chair act for the Authority's chair when he is absent, unable to act or the post is vacant, and allows the chair to delegate some of his powers in a written and specific delegation.
- Article 13أ - تتكون الموارد المالية للهيئة من المصادر الآتية : 1 - المقابل المالي للخدمات والعمولات التي تتقاضاها وفقًا لأحكام هذا النظام واللوائح…Amended M/16
- Article 14The article gives the Authority an independent annual budget submitted to the Minister of Finance, with surplus resources transferred to the Ministry of Finance and a general reserve equal to twice the previous year's expenses.
- Article 15The article treats any money owed to the Capital Market Authority by others as public money, handled like debts owed to the public treasury and collected using the treasury's debt collection procedures.
- Article 16The article requires the chair of the Capital Market Authority's board to submit an annual report to the Prime Minister on the Authority's work and financial position within 90 days of the end of the year.
- Article 17The article treats all non-public information obtained by the Capital Market Authority as confidential, and allows the Authority to disclose part of it to the extent the board considers necessary to protect investors.
- Article 18The article requires government bodies and other persons to provide the Capital Market Authority with the documents and information it requests for the purposes of carrying out its duties under the law.
- Article 19The article refers to the Authority's internal regulations for the rules on its administrative and financial affairs and its employees, including professional conduct, improving its work and raising employee performance.
- Article 20أ- تنشأ في المملكة سوق لتداول الأوراق المالية تسمى ( السوق المالية السعودية ) وتكون صفتها النظامية شركة مساهمة وفقًا لأحكام هذا النظام.…Amended M/16
- Article 20 bisThe article, added in 1441 AH, provides that the Exchange's objectives include fair listing requirements and trading rules, and prohibits it from distributing amounts to its members as profits without the board's approval.
- Article 21يتم تداول الأوراق المالية المدرجة في السوق عن طريق صفقات يتم إبرامها بين الوسطاء كل لصالح عميله، وتثبت بموجب قيود تدون في سجلات السوق، وفق…Amended M/16
- Article 22أ - تحدد لوائح وقواعد السوق شروط ومتطلبات العضوية في السوق. ب - يدير السوق مجلس إدارة مكون من تسعة أعضاء يعين بقرار من مجلس الوزراء بترشيح…Amended M/16
- Article 23أ - يقترح مجلس إدارة السوق اللوائح والقواعد والتعليمات اللازمة لعمل السوق بما في ذلك الأمور الآتية : 1 - شروط إدراج وتداول الأوراق…Amended M/16
- Article 24The article allows the Saudi Exchange to charge fees for its services to its members, the issuers of listed securities and others.
- Article 25أ - تُنشئ الهيئة لجنة تسمى ( لجنة الفصل في منازعات الأوراق المالية ) تختص بالفصل في المنازعات التي تقع في نطاق أحكام هذا النظام ولوائحه…Amended M/16
- Article 26أ - ينشئ مجلس إدارة السوق إدارة تسمى ( مركز إيداع الأوراق المالية ) تكون هي الجهة الوحيدة في المملكة المصرح لها بمزاولة عمليات إيداع…Amended M/16
- Article 27أ - يتم تسجيل ملكية الأوراق المالية المتداولة في السوق، وتسوية ومقاصة أثمان تلك الأوراق بموجب قيود تدون في سجلات المركز. ويتعين تسجيل…Amended M/16
- Article 28The article prohibits the employees of the Exchange, the Depository Center and the Clearing Center, and their auditors, advisers and experts, from disclosing information about owners of securities and financial positions, except in the cases their rules specify.Amended M/16
- Article 29يضع مجلس إدارة السوق، بموافقة مجلس الهيئة، التعليمات اللازمة لإدارة شؤون المركز، بما في ذلك وضع معايير السلوك المهني التي تطبق على مدير…Amended M/16
- Article 30يجوز أن يتقاضى المركز مقابلًا وعمولات لقاء الخدمات التي يقدمها، حسب ما تنص عليه اللوائح التنفيذية وقواعد العمل في المركز.Amended M/16
- Article 31يقتصر عمل الوساطة على من يكون حاصلا على ترخيص ساري المفعول، ويعمل وكيلا لشركة مساهمة مرخص لها بممارسة أعمال الوساطة، ما لم يكن ذلك الشخص…Amended M/16
- Article 32The article defines the broker and the broker's agent by the commercial activities they carry on in securities, defines the portfolio manager, and allows the Authority to set exceptions to both definitions.
- Article 33أ - تقوم الهيئة بمنح الترخيص المشار إليه في المادة الحادية والثلاثين خلال ثلاثين يومًا من تاريخ استلامها من السوق المعلومات والمستندات…Amended M/16
- Article 34على الوسيط ووكيل الوسيط التقيد بلوائح السوق وقواعدها الخاصة بتنظيم عمل الوسطاء.Amended M/16
- Article 35للسوق أن تقوم بالتحقيق والتفتيش على أي وسيط أو وكيل وسيط للتأكد من كون هذا الشخص أو شخص آخر خالف أو يخالف أو قامت قرائن على أنه على وشك أن…Amended M/16
- Article 36The article allows any broker or broker's agent to give up its license by notifying the Authority in writing, on the terms the Authority considers necessary for the soundness of the market or investor protection.
- Article 37The article requires licensed brokers and their agents to file with the Authority and the Market the reports provided for in the regulations and rules of the Authority and the Market.
- Article 38The article makes the Capital Market Authority the body that supervises the compulsory and voluntary liquidation of a broker's business.
- Article 39The article defines an investment fund as a joint investment program run by the investment manager for set fees, and gives the Authority the task of regulating funds, portfolio managers and investment advisers.
- Article 40The article bars offering securities until the prospectus has been submitted to the Authority and published and commissions paid, lets the Authority exempt some requirements, and sets the permitted ways of making the offer.
- Article 41The article bars the issuer, its affiliate and the underwriter from selling the issuer's securities until the Authority has approved the prospectus and it has taken effect, and requires the approved prospectus to be sent to the buyer before the sale.
- Article 42The article sets out the information a prospectus must contain: a description of the issuer and its management, the securities, proceeds and commissions, audited financial position, and whatever else the Authority requires.
- Article 43The article requires the Authority to announce acceptance or rejection of a prospectus, with power to set its period of effect, and requires the issuer to notify the Authority in writing of any material change and publish a press release.
- Article 44The article lets the Authority's board reject a prospectus if its information is lacking or misleading, its fees have not been paid in full, or the issuer has not submitted its periodic reports.
- Article 45The article requires issuers to submit quarterly and audited annual reports to the Authority with set content, and treats some of their data as confidential, not to be disclosed before it is provided to the Authority and announced.
- Article 46The article requires the issuer to notify the Authority and the Market in writing of material developments affecting prices, and lets them request information from it and require it to announce or publish it at its own expense.
- Article 47The article lets the public, for fees set by the Authority, inspect copies of prospectuses, periodic reports and information filed with it that it has announced or obtained.
- Article 48The article authorizes the Capital Market Authority to set disclosure forms and instructions, relieves it of responsibility for missing or misleading documents filed with it, and makes the publisher of an advertisement responsible for its publishing errors.
- Article 49The article treats as a violator anyone who deliberately does an act that creates a false or misleading impression about the market, prices or the value of a security, and lists forms of this fraud.
- Article 50The article prohibits an insider from trading on inside information or disclosing it to someone expected to trade, and prohibits anyone else from trading on information they know was disclosed in violation of the law.
- Article 51The article requires the Capital Market Authority to issue rules governing disclosure of information and other practices in proxy solicitations relating to any security listed on the Market.
- Article 52The article directs the Authority to regulate restricted purchases and restricted offers of shares, defined as buying, or offering to buy, listed voting shares reaching 10% or more.
- Article 53The article sets out, non-exhaustively, the Authority's powers in issuing rules on restricted share purchases and offers, such as adjusting percentages, timing of announcements, disclosure requirements and duties of the target company.
- Article 54The article lets the Authority's board, within 60 days, order a person who has reached ownership of 50% or more of a class of shares through a restricted purchase or offer to make an offer to buy the rest of that class.
- Article 55The article gives a buyer of a security the right to compensation if the approved prospectus contained materially incorrect statements or omitted material facts, and specifies who is liable, how liability can be defeated and how compensation is calculated.Amended M/16
- Article 56The article makes anyone who made an incorrect statement, or omitted a statement, about a material fact, thereby misleading another in selling or buying a security, liable to compensate material damage.
- Article 57The article makes a person who deliberately manipulates a security's price liable to compensate those whose dealing price was severely and adversely affected, and lets the Committee imprison violators of Articles 49 and 50 for up to 5 years.
- Article 58لا تسمع أي دعوى بموجب المواد الخامسة والخمسين، والسادسة والخمسين، والسابعة والخمسين من هذا النظام إذا تم إيداع الشكوى لدى الهيئة بعد مرور…Amended M/16
- Article 59أ - إذا تبين للهيئة أن أي شخص قد اشترك، أو يشترك، أو شرع في أعمال أو ممارسات تشكل مخالفة لأي من أحكام هذا النظام، أو اللوائح أو القواعد…Amended M/16
- Article 60أ - يعد أي شخص يقوم بممارسة الوساطة أو يدعي ممارستها دون ترخيص مخالفًا لأحكام المادة الحادية والثلاثين من هذا النظام، وتطبق بحقه أي من…Amended M/16
- Article 61أ - يترتب على عدم التزام الوسيط أو وكيل الوسيط المرخص له بلوائح السوق وقواعدها الخاصة بتنظيم عمل الوسطاء تعرضه لإجراءات تأديبية طبقًا…Amended M/16
- Article 62أ - للمجلس أن يصدر قرارًا يوجه فيه اللوم إلى الوسيط أو وكيل الوسيط المخالف، أو يفرض بمقتضاه قيودًا على الأنشطة أو الأعمال أو العمليات…Amended M/16
- Article 63يجوز تعليق ترخيص الوسيط أو وكيل الوسيط بأمر من المجلس في حالة اكتشاف أنه لم يعد للوسيط وجود أو إذا توقف الوسيط عن ممارسة عمل الوساطة لمدة…Amended M/16
- Article 64يجوز بالاتفاق بين الهيئة والمتهم في مخالفة المادة الخمسين من هذا النظام تلافي إقامة الدعوى أمام اللجنة، وذلك بأن يدفع للهيئة مبلغًا لا…Amended M/16
- Article 65The article provides that the Capital Market Law repeals every provision that conflicts with it.
- Article 66The article requires the implementing regulations of the Capital Market Law to be issued within 150 days of its publication, to take effect when the law takes effect.
- Article 67The article provides that the Capital Market Law is published in the Official Gazette and takes effect 180 days after its publication.
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