Market Regulation

Paving

Back beginning, the first shareholding company in the Kingdom of the third decade of the twentieth century, the beginning of trading in the shares was at the end of the 1970s when the calendar growing number of companies contributing. In 1403 e (1984) was ordered Commissioner Karim organization share trading through local banks and the formation of a ministerial committee to oversee the market composed of the Minister of Finance and Minister of Trade and governor SAMA emerged from the oversight committee on the problem of those actors. The entrusted to the management control of the shares with the Saudi Arab Monetary task of surveillance and monitoring and overseeing daily operations of share trading in the market, with effect from the first half of 1405 e. In 1990 was the first application of an integrated system of electronic trading and settlement and clearing, known ESIS, and in October 2001 was trading system by launching the latest quantum leap by introducing advanced techniques and the addition of new features and advantages of the system of circulation. As part of a broad regulatory developments designed to keep pace with global developments and improve the investment environment Kingdom has reviewed many existing regulations and modernized, and the issuance of new regulations and meet the modern requirements of development and modernization, has been at the forefront of these regulations a "financial market system", which aims to restructure Saudi capital market as the latest foundations and applicable international standards in this area.



The financial market

A "system of the financial market" by Royal Decree No. (m / 30) and the date 06/02/1424 07/31/2003 e approved and become effective after (180) days from the date of publication in the Official Gazette. The system aims to restructure the financial market Kingdom on new foundations sophisticated would strengthen confidence and attractiveness of the market and investors to ensure the promotion of disclosure and transparency with respect to securities, and to provide justice in dealing and protection of securities dealers. The system provided for the first time the umbrella of the reference order integrated market structures and institutions clarify the regulatory and supervisory and operational control of the market and its powers and functions very clearly through the separation between the regulatory and supervisory and operational role of the market through the introduction of new institutions of the market and committees to settle the disputes are as follows:

1) the financial market.

2) the financial market (stock market).

3) status deposit securities.

4) Committee chapter in securities disputes.

5) Appeals Committee.





Investment portfolios of share trading



Controls and procedures for non-Saudis

Subject-resident Saudis, irrespective of their nationalities, who wish to open an investment governor of share trading in the financial market, Saudi Arabia (circulation) of the controls and procedures following:

Prerequisites:

*

A valid.
*

A bank account with a local bank.

Procedure:

Documents required for the opening of the founding investor and portfolio:

*

The mobilization model for establishment of the investor and the signature includes: nationality, date of birth, bank account number and valid residence address lasting.
*

Ratification of the Bank to the information mentioned in the model approved by the Director of Operations or authorized within the bank.
*

The image of residency and passport.
*

Address hand work site and sealed.
*

The investor data will be set up through the center of deposit to be sure of the data prior to the completion of the attached addendum.

General conditions:

*

These instructions are limited to individual residents only.
*

Been Pause portfolio at the expiration of the residence and re-activation Once renew residence.
*

Strictly prohibit agencies and the Department of portfolio management personality.
*

May conversion portfolio to another.
*

Apply controls opening accounts and cash issued by SAMA to these procedures.

Privileges and facilities:

*

Allows resident contributor subscription to the capital increases.
*

Resident contributor entitled to vote in the association and candidacy for membership of boards of directors unless the company statute otherwise.
*

Opening portfolio only one resident investor with a bank.