Kuwait bourse begins off-exchange trades Sunday – New system first-of-its-kind in the Arabian Gulf region

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KUWAIT CITY, Nov 17, (KUNA): Boursa Kuwait announced on Saturday it would begin on Sunday effecting Over the Counter Market (OTC) regulations and trading in this off-exchange system at the national stock exchange.

The bourse said on its website that the new system would be launched at 09:00 am (06:00 GMT) and would remain open till closing the operations by 12:40 noon time (09:40 GMT).

The new system for trades in unlisted stocks is the first of its kind to be launched in the Arabian Gulf region. The system encompasses trades that may lead to earnings or losses, assets’ ownership transfer – via licensed brokerage offices. Traders in this system bears risks’ responsibilities; he or she are expected to examine financial and legal status of companies, stocks of which are being traded. The old off-exchange system had some flaws and lacked transparency.

Traders could not get acquainted with extent of seriousness as to selling and buying, exact prices and difficulty in collecting financial proceeds. According to the new rules, trades must be done through brokers, like the official market. Moreover, all the companies must keep shareholders’ records at a licensed clearance agency.

This news has been read 9996 times!