12/11/2017 7:46:38 PM Market is CLOSED     عربي
/ Over The Counter services (OTC)

Over The Counter services (OTC) from Boursa Kuwait

Boursa Kuwait operates “Souq Al-Jet” which is an Over-the-Counter (OTC) service for local stocks of shareholding companies that are not listed on the main market along with corporate bonds and sukok.

OTC Process in Brief
At present buyers and sellers must operate through licenced brokers (it is not necessary to use the same one). The brokers provide the formal documentation required from their clients for the transaction to Boursa Kuwait, where it is reviewed.

If the transaction is approved, Boursa Kuwait will issue a Notice of Approval to each broker involved in the transaction, which allows the transfer of ownership. After receiving the approved transaction, the broker(s) finalize the transaction at the Clearing Company, or the company which holds its shareholder registrar to transfer the ownership to the buyer. If Boursa Kuwait does not approve the transaction, a formal Notice of Rejection will be issued to the broker(s).

Regulation
Unlisted companies are not regulated by the Capital Markets Authority. Trading in OTC Market has a higher risk than trading in the Main Market.

Electronic trading
Boursa Kuwait is planning to migrate its OTC services to an electronic system in 2017. Details will be advised as soon as they become available.

Further information
For more information about OTC Trading, email OTCTrading@Boursakuwait.com.kw