Regulatory Alerts2024-01-17
Instructions for Offering Real Estate Contributions Certificates
The Capital Market Authority of Saudi Arabia has issued these Instructions to regulate the registration and offering of real estate contribution certificates through licensed capital market institutions. The framework mandates that offers, whether via private placement or public offering, must secure prior Authority approval, adhere to a 100 million Saudi Riyal funding cap, and be executed by institutions conducting thorough due diligence and maintaining accurate certificate holder registers. Furthermore, the rules establish strict continuing obligations for institutions, including detailed prospectus requirements, mandatory record-keeping for ten years, and clear procedures for fund distribution and post-offering reporting.
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