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KUWAIT CITY, Nov 12: Companies that have not yet disclosed their financial statements – audited and approved data – for the third quarter of this year have only three working days before they face suspension from trading on the Kuwait Stock Exchange Market, reports Al-Rai daily.
The daily quoting reliable sources said that the Capital Markets Authority (CMA) is working with high professionalism in tracking companies that are in doubt because of the uncertainty of their disclosures or repeated violations, pointing out that the list includes companies, which in the past few days were put under the microscope following complaints and information about abuses.
Some of the abuses, according to sources, are financial imbalances in budgets, including the transfer of funds and financing activities which do not fall in line of activity of these companies, in addition to some companies incurring losses of approximately 75 percent of the capital and other companies for committing violations in disclosures.
The Supervisory Sector of CMA plays a vital role in cooperation with the Markets and Legal Sectors, in monitoring violations, dealing with them and describing them legally. This confirms that the dynamic work of CMA has become more rapid and does not stop at certain limits.
The sources pointed out that the concerned authorities are monitoring the conditions of companies that have proved to have crossed the red lines by repeatedly violating the law and proven to have manipulated and provided misleading data to the Authority, and to the public dealing in the stock market, pointing out that many companies operating in unauthorized activities are currently under surveillance.
From time to time, the Markets Authority receives reports from other regulators regarding violations of licensed or unauthorized companies, all of which are placed under scrutiny. The concerned sectors of the CMA have the objective of keeping only clean companies in the market. The sources said CMA has played a strategic role for a year and a half after it adopted the standard of efficiency, follow-up and inspection.