27/04/2016 05:27 AST
Boursa Kuwait announced that it has officially assumed responsibility for the management of the Kuwait Stock Exchange (KSE)’s operations. The hand-over follows the implementation of a detailed operational plan and strategic roadmap to ensure the smooth transition of stock market operations. The process has been developed in close collaboration with the Capital Markets Authority (CMA).
The announcement was made at a joint press briefing at the stock exchange headquarters by the Chairman of the CMA Board of Commissioners Dr Nayef Falah Al-Hajraf, CMA Board Commissioner Khalifa Al-Ajeel, who directed the hand-over operation, and Vice-Chairman and CEO Boursa Kuwait, Khaled Abdulrazzaq AlKhaled.
Today’s changes also mean that Boursa Kuwait’s Board of Directors has replaced KSE’s committee, whose duties have ceased. In addition, Boursa Kuwait’s CEO has been officially assigned as the Director of the Market. The transition period is scheduled for completion by Sept 30, 2016, when Boursa Kuwait will obtain its official license to replace KSE, and at a later stage, prepare for an Initial Public Offering (IPO).
Al-Hajraf, commenting after Boursa Kuwait ended its first day of trading as the official operator of the market, said: “Today we have taken the first step on the road to privatizing the Kuwait Stock Exchange and we are looking forward to working closely with Boursa Kuwait’s management on making further progress. This will include the development of investment tools, restructuring the market to increase its competitiveness, working to increase liquidity and attract investments with a view to issuing an IPO to Kuwaiti citizens, collaborating with other government stakeholders and determining a stake for an international operator.”
Al-Hajraf added: “Starting today, Kuwait’s stock exchange is managed by the Kuwaiti private sector, which has always been a leading and creative economic force. We are very confident in the capabilities of Boursa Kuwait management in translating its development plans and strategies into an efficient, transparent and accessible stock market that both meets the aspirations of Kuwaitis and contributes to HH the Amir’s vision of transforming Kuwait to a financial and commercial center.”
Al-Ajeel, who supervised and directed the transformation process, expressed pride in the success of the hand-over. He added that the CMA had played an active role in the process, maintaining the highest institutional standards and that it will continue to pursue the completion of the process, with the aim of fully licensing Boursa Kuwait to take complete control and ownership of the market by 30 September 2016.
He said; “All the CMA divisions have worked throughout the past period with stakeholders such as the Kuwait Clearing Company, Kuwait Stock Exchange (KSE), and Boursa Kuwait. We had more than 1,500 hours of recorded meeting time resulting in 20 regulatory resolutions, and we archived more than 95 million documents that date back to the establishment of the market 33 years ago. This was a great effort by all involved and I would like to thank the teams for their professionalism and commitment.”
Al-Ajeel also pointed that the CMA has worked to create a suitable legal environment, organising its regulations to accommodate this significant institutional change, for the benefit the financial markets and the Kuwaiti economy as a whole.
He concluded, “CMA works according to strategies and long-term plans that aim to create a vibrant financial market with a strong structure that qualifies it to be a leader in the ranks of developing markets in the world. We look forward to what Boursa Kuwait will bring to improve and develop the market and we will provide them all the support we can, in accordance to the highest international standards and best practices.”
AlKhaled said: “Today, Boursa Kuwait embarks on a journey that aims to progr
Arab Times
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