The Over the Counter (OTC) platform is a credible and transparent investment system developed by Boursa Kuwait for investors looking to trade in unlisted securities. The new electronic platform for trading unlisted securities is the only one in the GCC region. The platform also gives small companies and start-up businesses that do not qualify for listing in the official market the opportunity to grow as well as simplified processes to register on the OTC platform.
All trades through the OTC platform are executed by licensed brokerage firms. All trades are subject to the rules and regulations of the OTC Rulebook
OTC clients assume the responsibility for the risks that may result from such trades and investigating the financial and legal status of the company that they wish to trade securities from.
Boursa Kuwait restructured the unlisted securities trading mechanism from the ground up introducing major reforms, including a fully automated framework and updated procedures and processes to bridge the legal and transactional gaps encountered in the previous mechanism.
As per OTC rules, all trades should be carried out through brokers in a similar fashion to the official market, and companies should keep all records of shareholders through an authorized clearing company.
The new OTC platform facilitates the trading, buying, and selling of unlisted securities, reduces paperwork through full automation, and facilitates settlement and clearing processes for investors.
For more information about Boursa Kuwait's OTC platform, please contact OTCTrading@boursakuwait.com.kw.