CMA publishes draft amendments to settling securities disputes regulations procedures

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The Capital Market Authority (CMA) published the draft amendments to the Resolution of Securities Disputes Proceedings Regulations for public consultation for a period of 30 calendar days ending on Aug. 13.

The draft amendments aim to improve the proceedings of securities disputes before the Committees for Resolution of Securities Disputes and develop procedures that enhance the speed and efficiency of hearing and deciding on the lawsuit.

It also aims to develop every aspect that will enhance the confidence of the capital market's participants, support its growth and prosperity, and enhance investors' protection.

The main elements of the draft amendments are as follows:

1) Regulating the procedures for considering the lawsuit through the electronic system, including submitting and filing the claim with the committee, holding remote hearings, exchanging memorandums, issuing decisions, and objecting to them.

2) Adding a requirement that the pleading and submission of any requests or memoranda to the committee or appeal committee must be from a lawyer or legal representative licensed in the Kingdom, in all claims in which the plaintiff is a capital market institution or a listed joint stock company.

3) Regulating the procedures for submitting incidental applications to the committee, including the right of parties to submitting incidental applications that are related to the original case directly to the committee.

4) Regulating the registering of a class-action lawsuit directly by the Committee if a number of lawsuits considered before the committee are identical in terms of the legal bases, merits, and the subject matter of the request.

The CMA will receive the opinions and comments of relevant and interested persons, through any of the following:

1) The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center via the following link: (istitlaa.ncc.gov.sa).

2) The prescribed form via the following email: Laws.Regulations@cma.org.sa

All comments will be taken into full consideration for the purpose of finalizing the draft amendments.