CME-1 Securities Regulations

Question 1

What is the primary regulatory body overseeing the capital market in Saudi Arabia?

Accepted Answer

Capital Market Authority (CMA)

Answer

Saudi Central Bank (SAMA)

Answer

Ministry of Finance

Answer

Saudi Stock Exchange (Tadawul)

Question 2

Under the Saudi Capital Market Law, which activity requires a license from the CMA?

Accepted Answer

Dealing in securities as a business

Answer

Opening a bank savings account

Answer

Purchasing government bonds for personal investment

Answer

Trading foreign currencies at airports

Question 3

What is the maximum prison sentence for insider trading violations under Saudi Capital Market Law?

Accepted Answer

5 years

Answer

1 year

Answer

3 years

Answer

10 years

Question 4

Which of the following is classified as a 'security' under the CMA regulations?

Accepted Answer

Convertible debt instruments

Answer

Real estate deeds

Answer

Vehicle insurance policies

Answer

Bank letters of credit

Question 5

What is the role of the Committee for the Resolution of Securities Disputes (CRSD)?

Accepted Answer

Resolving disputes related to securities activities

Answer

Setting interest rates for bonds

Answer

Approving IPO applications

Answer

Managing the Tadawul trading platform

Question 6

An Authorized Person under CMA regulations must maintain a minimum capital adequacy ratio. What happens if they fall below the required threshold?

Accepted Answer

They must notify the CMA immediately and submit a remediation plan

Answer

Their license is automatically revoked

Answer

They are given a 1-year grace period with no restrictions

Answer

They can continue operations without any obligation