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 law governs the Capital Market Authority (CMA) in Saudi Arabia?
Answer: Capital Market Law (Royal Decree M/30)
The Capital Market Law issued by Royal Decree M/30 in 2003 established the CMA and governs the regulation of the Saudi capital market.
What is the primary objective of the Capital Market Authority (CMA) in Saudi Arabia?
Answer: Regulating and developing the capital market to protect investors and ensure fairness
The CMA's primary mandate is to regulate and develop the Saudi capital market, ensure its efficiency and transparency, and protect investors from unfair practices.
Which entity operates the Saudi Exchange (Tadawul) and is overseen by the CMA?
Answer: Saudi Exchange (Tadawul)
The Saudi Exchange (Tadawul) is the national stock exchange of Saudi Arabia and operates under the oversight of the Capital Market Authority.
What is the minimum capital requirement for a company to list on the Saudi Exchange Main Market?
Answer: SAR 300 million
Companies seeking a listing on the Saudi Exchange Main Market must meet a minimum paid-up capital requirement of SAR 300 million.
Under the Capital Market Law, which of the following constitutes a 'security'?
Answer: Shares, bonds, sukuk, investment fund units, and derivatives
The Capital Market Law defines securities broadly to include shares, debt instruments, sukuk, investment fund units, and other financial instruments specified by the CMA.
What is the role of the Securities Dispute Resolution Committee (SDRC) in Saudi Arabia?
Answer: Adjudicating disputes arising from CMA regulations and violations
The SDRC is the specialist judicial body that hears and resolves disputes related to CMA regulations, securities violations, and investor complaints.
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