Transparency Within Kuwait New Capital Markets Bill Aims To Regulate Securities Activities In Kuwait

Kuwait's National Assembly unanimously passed on January 20th, 2010 a groundbreaking bill that will regulate the country's stock market for the first time. The Capital Markets Bill (the "Bill"), once passed in a second reading in the weeks to come,will provide for greater transparency of security activities within Kuwait.

The Bill revolutionises the previously unregulated Kuwaiti securities market by implementing regulations and licensing requirements for entities such as stock exchanges, clearing companies, and investment funds to make such activities equitable and competitive with foreign securities markets. The Bill also states that stock exchanges (i.e., the Kuwait Stock Exchange ("KSE") and any other future stock exchanges) shall be converted to shareholding companies of which the government must own at least 60%. The remaining 40% are allotted for sale to Kuwaiti citizens in an initial public offering. While certain provisions of the Bill might change during