Regulatory Alerts2015-11-08
Instructions Regarding Banks' Purchase of Their Own Shares
The Central Bank of Kuwait issued Instructions No. 2/BS/IBS/FS/IFS/ES/340/2014 to regulate the purchase, sale, and disposal of treasury shares by all CBK-supervised companies listed on the Kuwait Stock Exchange. Regulated entities must obtain prior Central Bank approval, limit transactions to ten percent of paid-up capital funded exclusively by reserves and profits, and submit detailed quarterly statements to external auditors. The directives mandate specific accounting treatments, including the establishment of a non-distributable Treasury Shares Reserve and strict disclosure requirements, while superseding all prior treasury share regulations effective October 21, 2014.
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