Saudi Capital Market Law Flashcards
6 cards from real CME-1 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Saudi Capital Market Law flashcards as text
Which CMA regulation governs public offerings of securities in Saudi Arabia?
Answer: Offers of Securities and Continuing Obligations Regulations
The Offers of Securities and Continuing Obligations Regulations govern public offerings, disclosure requirements, and ongoing listing obligations for issuers.
What disclosure document must a company publish before conducting an Initial Public Offering (IPO) in Saudi Arabia?
Answer: Prospectus
A company must publish a CMA-approved prospectus containing all material information about the company and the offering before conducting an IPO.
Under CMA rules, how long must issuers retain books and records?
Answer: 10 years
CMA regulations require listed companies and licensed persons to retain their books, records, and documents for a minimum of 10 years.
What is the CMA's approach to regulating foreign investment in Saudi listed securities?
Answer: Qualified Foreign Investors (QFIs) may invest subject to CMA rules
The CMA allows Qualified Foreign Investors (QFIs) to invest in Saudi listed securities provided they meet eligibility criteria set by the CMA and the Saudi Exchange.
Which of the following activities requires a CMA license in Saudi Arabia?
Answer: Dealing, advising, or managing investments in securities
Dealing in securities, providing investment advice, and managing investment portfolios all constitute regulated activities requiring a CMA license.
What is 'Nomu' in the context of the Saudi capital market?
Answer: The parallel equity market for smaller companies
Nomu is the parallel equity market of the Saudi Exchange designed for smaller and emerging companies, with lighter listing requirements than the Main Market.
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