30 Jan 2012
(MENAFN) Saudi Arabia’s Capital Market Authority (CMA) signed a cooperation agreement with the Saudi Arabian Monetary Agency (SAMA) to supervise the financial sector in order to improve its stability, Reuters reported.
Under the agreement, both CMA and SAMA will coordinate in the supervision of corporate governance, risk management measures, initial public offerings (IPOs), sukuk issuance and merger and acquisition regulations, in addition to the exchange of information.
CMA said that the two entities will coordinate to issue or review regulations and any other moves to ensure the stability of the Saudi financial sector.
The accord came as Saudi Arabia is weighs opening up its stock market to direct investments by foreigners.
CMA recently amended article 14 of its listing rules, allowing foreign companies to list securities on the kingdom’s bourse.
Currently companies need only CMA approval for mergers and capital increases.
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