Article 46 of the Saudi Capital Market Law
المادة 46 من نظام السوق المالية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - على الجهة المصدرة للأوراق المالية إبلاغ الهيئة خطيًّا، عند علمها بحدوث تطورات جوهرية قد تؤثر على أسعار الأوراق المالية المصدرة من قبلها. وإذا كان لها ورقة مالية متداولة في السوق، فيجب إبلاغ السوق بهذه التطورات خطيًّا.
ب - يجوز للهيئة أو السوق أن تطلب من الجهة المصدرة للأوراق المالية أي معلومات أو بيانات خاصة بها، وعلى الجهة المصدرة تقديمها خلال المدة المحددة في الطلب.
ج - يجوز لمجلس الهيئة أو السوق بعد استعراض الوقائع أن يطلب من الجهة المصدرة الإعلان عن أي معلومات أو بيانات خاصة بها، كما يحق للمجلس أو السوق أن ينشر تلك المعلومات أو البيانات على نفقة الجهة المصدرة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 46 explained in plain English
This article regulates continuing disclosure of events that affect prices, in addition to the periodic reports required by Article 45.
Paragraph (a): reporting material developments
- The issuing entity must notify the Authority in writing when it learns of material developments that may affect the prices of its securities.
- If it has a security traded on the Market, it must also notify the Market in writing.
Paragraph (b): requests for information. The Authority or the Market may ask the issuing entity for any information or data relating to it, and the entity must provide it within the period specified in the request.
Paragraph (c): compulsory announcement. The board of the Authority or the Market may, after reviewing the facts, require the issuing entity to announce any information or data relating to it, and the board or the Market is also entitled to publish it at the issuing entity's expense.
Link to Articles 45 and 47: Article 45 imposes quarterly and annual reports with specified content, and treats some of their data as confidential, not to be disclosed before it is provided to the Authority and announced. This article, by contrast, does not wait for the reporting date; it is tied to the occurrence of the material development. Article 47 allows the public, for fees set by the Authority, to inspect copies of prospectuses, reports and information filed with the Authority that have been announced or obtained.
The article does not define "material developments" beyond saying that they may affect prices, and assessing this in a particular case calls for consulting a lawyer specializing in securities.
Practical example
A listed company in Dammam learned that it had won a major government contract that may affect the price of its share. It must notify the Authority and the Market in writing of this development. If the Authority asks it for the details of the contract, it must provide them within the period specified in the request.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 46 of the Saudi Capital Market Law
When must a listed company disclose a material event?
When it learns of material developments that may affect the prices of its securities, it must notify the Authority in writing, and notify the Market in writing if it has a security traded there.
May the Capital Market Authority request information from a company?
Yes. The Authority or the Market may ask the issuing entity for any information or data relating to it, and it must provide it within the period specified in the request.
Who bears the cost of publishing the information the Authority requires?
The board or the Market is entitled to publish the information or data at the issuing entity's expense.
More articles on Disclosure and Periodic Reports
- Article 37
The 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.
يجب على الوسطاء أو وكلاء الوسطاء المرخص لهم أن يودعوا لدى الهيئة والسوق التقارير التي تنص عليها لوائح الهيئة والسوق وقواعدهما.
- Article 42
The 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.
يجب أن تتضمن نشرة الإصدار المعلومات والبيانات الآتية: أ - المعلومات التي تتطلبها قواعد الهيئة التي تبين وصفًا كافيًا للمصدر، وطبيعة عمله والأشخاص القائمين على إ
- Article 43
The 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.
أ - يجب على الهيئة بعد قيامها بمراجعة نشرة الإصدار إعلان قبولها أو رفضها للنشرة. وللهيئة في حالة قبول النشرة أن تحدد فترة زمنية تكون نشرة الإصدار نافذة خلالها.
- Article 45
The 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.
أ - يجب على كل مصدر يطرح أوراقًا مالية للجمهور أو تكون له أوراق مالية متداولة في السوق أن يقدم إلى الهيئة تقارير ربع سنوية وسنوية، وتكون التقارير السنوية مدققة
- Article 47
The 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.
يسمح للجمهور، مقابل أتعاب تحددها الهيئة، بالاطلاع على نسخ من نشرات الإصدار والتقارير الدورية والمعلومات والبيانات المودعة لدى الهيئة التي جرى الإعلان عنها أو ال
- Article 48
The 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.
أ - تحدد الهيئة نماذج وتعليمات الإفصاح، بما في ذلك المعلومات التي يجب أن تتضمنها نشرات الإصدار والتقارير الدورية ، التي يتعين على الجهات التي تخضع لرقابة الهيئة
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.