Kuwait: Requirements for Obtaining Approval of a Private Placement Memorandum from the Capital Markets Authority
Type
E-journal
Date
13 Apr 2016
Jurisdiction
Kuwait
Taxonomy
General Banking & Finance Law
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
In February 2010, the Kuwait government passed new laws and regulations related to the activities of securities in Kuwait, namely Law No. 7 of 2010 (the “Law No. 7”) and Executive Bylaws for Law No. 7 of 2010 Concerning Establishment of the Capital Markets Authority and Organization of Securities Activity (the “CMA Bylaws”), (collectively the “Capital Markets Law”). The Capital Markets Authority (“CMA”) is currently the regulatory authority primarily responsible for regulating the marketing, offer and sale of securities in Kuwait.
Chapter 9 of the Capital Markets Law governs the placement memorandum of securities issued by companies. Pursuant to Article 370 of the CMA Bylaws, no person may offer securities for public offering or private placement unless a placement memorandum is submitted in accordance with the data and procedures set forth in the CMA Bylaws and as approved by the CMA. Therefore, the CMA will request the submission for review of a private placement memorandum (the “PPM”), which must contain the following:
• Name, address of the head office, date and place of incorporation of the issuing entity.