CME-1 Saudi Capital Market Law

Question 1

Which law governs the Capital Market Authority (CMA) in Saudi Arabia?

Accepted Answer

Capital Market Law (Royal Decree M/30)

Answer

Companies Law

Answer

Banking Control Law

Answer

Investment Fund Regulations

Question 2

What is the primary objective of the Capital Market Authority (CMA) in Saudi Arabia?

Accepted Answer

Regulating and developing the capital market to protect investors and ensure fairness

Answer

Collecting taxes on investments

Answer

Managing the government's investment portfolio

Answer

Setting monetary policy

Question 3

Which entity operates the Saudi Exchange (Tadawul) and is overseen by the CMA?

Accepted Answer

Saudi Exchange (Tadawul)

Answer

Saudi Central Bank (SAMA)

Answer

Ministry of Finance

Answer

Public Investment Fund (PIF)

Question 4

What is the minimum capital requirement for a company to list on the Saudi Exchange Main Market?

Accepted Answer

SAR 300 million

Answer

SAR 10 million

Answer

SAR 50 million

Answer

SAR 1 billion

Question 5

Under the Capital Market Law, which of the following constitutes a 'security'?

Accepted Answer

Shares, bonds, sukuk, investment fund units, and derivatives

Answer

Real estate title deeds only

Answer

Bank deposits

Answer

Insurance policies only

Question 6

What is the role of the Securities Dispute Resolution Committee (SDRC) in Saudi Arabia?

Accepted Answer

Adjudicating disputes arising from CMA regulations and violations

Answer

Issuing new securities licenses

Answer

Setting listing requirements

Answer

Conducting market surveillance