Question

• Write a short essay on The Capital Market Authority of Saudi Arabia.
• The essay should be approximately 500 words,with Times new roman font and size 12.
• Do not copy & paste.

Answer 1

CMA is a government agency with complete financial, legal and administrative independence, and has direct contact with the Prime Minister. CMA is responsible for the supervision, development and protection of investors in the Saudi capital market. Its purpose is to promote financing, stimulate investment, build confidence and build capacity. Function: The function of CMA is to regulate and develop the Saudi capital market by issuing the necessary regulations to implement the provisions of the capital market law. It also includes the definition and control of financial rules and regulations and the development of capital markets, including the regulations of the Saudi Stock Exchange Tadawul. AMC is the first government agency to obtain the mature certification of the National Enterprise Architecture (NEA) agency structure of the e-government Yesser program.

The basic goal is to create an appropriate investment environment, enhance the confidence and standards of transparency and openness of all listed companies, and protect investors and issuers from illegal acts in the market. In 2020, Mohammed El Kuwaiz, chairman of the Capital Markets Authority, said that the ownership of financial investors in Saudi capital markets has tripled this year. The measure aims to increase market efficiency and attractiveness, and expand the foundation of institutional investment. During this period, the Capital Market Authority (CMA) has the responsibility to protect the market from unfair and improper behavior such as fraud, fraud and manipulation. In addition, in order to ensure the fairness, efficiency and transparency of securities transactions, and in accordance with Article (17) of the Capital Market Law, CMA hopes to inform investors and market participants of the capital issued. A resolution passed by the CMA Board of Directors mentioned the government's suspicion of violations. Suspected of violating Article 49 of the Capital Market Law and Article 2 of the Code of Market Conduct by buying and selling company stocks listed on the Saudi Stock Exchange. The President of the Financial Markets guarantees that it is committed to applying laws and implementing regulations in the financial markets, as well as protecting investors from illegal acts. Anyone interested in these acts can file a claim with the Commission for compensation under Article 57 of the Capital Market Law. You must then complain to CMA.

At present, according to the preventive measures announced by the country to limit the emergence of coronavirus (COVID-19), due to these measures, they are essential for the health of the investor community. And all its market segments. . As well as the personnel working in the financial sector, and based on these special circumstances and their impact on the issuer and expanding the scope of preventive measures initiated by the authorities, and allowing listed companies, real estate investment funds, exchange trading funds to comply with capital market laws and regulations Regulations, requiring disclosure of board reports and annual financial information enforcement as of December 31, 2019, to protect all market participants and maintain an orderly market, CMA announced the resolution of the problem. CMA should interact more closely with regulated authorities and increase transparency in the logic and process of setting legal standards. This article also believes that CMA should work more closely with other regulatory agencies on domestic and international aircraft to more effectively control system risks and improve market efficiency. In order to minimize the system risk, this paper proposes the diversification of listed departments. Finally, this article describes the regulatory framework as a potentially effective socioeconomic policy tool that can be used in parallel with other available policy tools. This article believes that CMA should play a greater role in Saudi research.