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

The Capital Market Law issued by Royal Decree M/30 in 2003 established the CMA and governs the regulation of the Saudi capital market.

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

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.

Question 3

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

Accepted Answer

Saudi Exchange (Tadawul)

Answer

The Saudi Exchange (Tadawul) is the national stock exchange of Saudi Arabia and operates under the oversight of the Capital Market Authority.

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

Companies seeking a listing on the Saudi Exchange Main Market must meet a minimum paid-up capital requirement of SAR 300 million.

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

The Capital Market Law defines securities broadly to include shares, debt instruments, sukuk, investment fund units, and other financial instruments specified by the CMA.

CME-1 Practice Test

CME-1 Practice Test

CME-1 Saudi Capital Market Law