12/11/2017 7:49:08 PM Market is CLOSED     عربي
/ Violation Committee

Boursa Kuwait Violations Committee

• In compliance with Article (42) of Law number 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, Boursa Kuwait has established a Violations Committee who shall handle and decide on violations undertaken by Boursa Members. Article (42) of the abovementioned law describes procedures and mechanisms undertaken by the Violations Committee and defines the decisions that may be rendered by such Committee in pursuance of Articles (1-6) to (1-6-12) of module No. 4 of the Capital Markets Authority executive bylaws as follows:

• The Violations Committee is composed of three members experienced in financial, economic and legal affairs in addition to a secretariat.

• Violations that are committed against the provisions of Law number 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its executive bylaws and amendments are not part of the scope of work of Boursa Kuwait’s Violations Committee .

• Boursa Kuwait Violations Committee operates within a defined framework (to render its decisions) as follows:

o In the event of identifying a violation against Boursa Kuwait Rules committed by a Boursa Kuwait member, the violator is subject to investigation, which is carried out by Boursa Kuwait legal sector, the violator or his legal representative have the right to attend the investigation and express their defense.

o After concluding the investigation, the Legal Department will issue a recommendation to the Violations Committee. s.

o The violator is then summoned to attend the Violations Committee hearing and informed about the alleged violations at least three working days prior to the hearing day, the violator or his legal representative have the right to express the defense against the alleged violation before the committee.

o The Violations Committee then notifies the violator of its decision; the Committee is empowered to impose any of the disciplinary penalties defined under Law number 7 of 2010 and its executive bylaws.

o The Committee will then notify the Capital Markets Authority of the penalties it decided against a Boursa Kuwait member.

o Each Boursa Kuwait member, against whom a decision was rendered, shall have the right to file a grievance to the Capital Markets Authority and its Disciplinary Counsel within 15 days from receipt of the decision notification in writing.

o The disciplinary decisions made by the Violations Committee are executed after the expiration of the appeal period mentioned above except for the caution and warnings decisions addressed to the violator. The later will be annulled from the records if the Violations Committee decision was reversed by the Disciplinary Counsel.