Riyadh - Mubasher: The board of the Saudi Capital Market Authority (CMA) has amended the instructions and procedures related to listed companies with accumulated losses amounting to %50, according to an official statement issued on Monday.
CMA has changed the title to the instructions and procedures related to listed companies with accumulated losses amounting to %20 or more of its Capital.
The new rules require companies listed on the Saudi Stock Exchange (Tadawul) to immediately and without delay, disclose to the public in a separate announcement when its accumulated losses reach 20% or more and of its share capital.
The exchange will add a flag next to the company’s name on the exchange website indicating that the company’s accumulated losses reached 20% or more and less than 35% of its share capital, another flag if losses reached 35% or more and less than 50%, and a diffrent one if losses reached 50% or more.
These instructions shall be effective and mandatory starting from 22 April 2017, the statement indicated, adding that until that date the instructions and procedures related to listed companies with accumulated losses amounting to %50 or more of its capital are effective.
According to the statement published on Tadawul’s website, this comes in CMA pursuit to develop the capital market in Saudi Arabia, and to enhance the protection of investors, as well as to advance the procedures required to reduce risks related to securities transactions.
