CMA Seeks Public Consultation On Proposed Investor Categories For The Parallel Market

The Capital Market Authority (CMA) has invited stakeholders and interested parties in the capital market to provide their input on the draft titled "Development of Investor Categories in the Parallel Market." This draft includes proposed changes to investor categories allowed to invest in the Parallel Market. The consultation period is open for 30 days.

In a recent announcement, the CMA outlined that the draft aims to enhance investor categories in the Parallel Market – Nomu by relaxing eligibility criteria and requirements. These changes are anticipated to positively influence the market. The proposal suggests revising the term "Qualified Investor in the Parallel Market" to specifically denote those eligible to invest.

One significant amendment involves easing criteria for individual investors entering the Parallel Market – Nomu. Under new proposals, investors must have completed transactions worth SAR30 million over the past year, eliminating the previous requirement of at least ten transactions per quarter. Previously, investors needed SAR40 million in transactions within 12 months.

The proposed amendments also suggest classifying board members and committee members from companies listed in the Parallel Market as qualified investors. This classification would permit them to invest in the Parallel Market, broadening investment opportunities for these individuals.

The CMA stressed that feedback from relevant and interested parties will be fully considered before finalizing these amendments. This process aims to improve and develop the regulatory environment effectively. Comments can be submitted through various channels provided by CMA.

By reducing transaction value requirements by SAR10 million and removing quarterly transaction counts, these changes aim to make investing more accessible. The adjustments reflect a strategic move towards fostering a more inclusive investment landscape within Saudi Arabia's capital market.

The CMA's initiative underscores its commitment to refining market regulations while considering stakeholder opinions. Such efforts are crucial for maintaining a dynamic and responsive financial market environment that aligns with evolving economic needs.

With inputs from SPA