Regulations on the Organization and Operation of the Securities and Exchange Authority of the State of Kuwait

Regulations on the Organization and Operation of the Securities and Exchange Authority of the State of Kuwait

Article (1) Definitions

The words and expressions used in these Regulations shall have the meanings assigned to them below, unless the context requires otherwise:

• "The Law": Law No. 7 of 1999 regarding the establishment of the Securities and Exchange Authority.
• "The Authority": The Securities and Exchange Authority established under the Law.
• "The Council": The Board of Directors of the Authority.
• "The Minister": The Minister of Commerce and Industry.
• "The Executive Regulations": Executive Regulations of the Law.
• "The Market": The securities market in the State of Kuwait.
• "Securities": Shares, bonds, and other securities issued by companies, the State, or public institutions, as well as investment certificates and other instruments representing rights in property or profits, or conferring the right to acquire securities, as determined by the Council.
• "Investment Company": A company whose purpose is the investment of funds in securities.
• "Investment Fund": A pool of funds collected from investors for investment in securities, managed by an investment company.
• "Issuer": Any person or entity issuing securities.
• "Investor": Any person or entity investing in securities.
• "Broker": A person licensed by the Authority to conduct brokerage activities.
• "Dealer": A person licensed by the Authority to conduct dealing activities.
• "Market Maker": A person licensed by the Authority to provide liquidity in securities.
• "Clearing House": The entity responsible for clearing and settling trades.
• "Depository": The entity responsible for the safekeeping of securities.
• "Rating Agency": An entity licensed by the Authority to rate securities.
• "Audit Firm": An entity licensed by the Authority to audit financial statements.
• "Consultant": A person licensed by the Authority to provide consulting services.
• "Data Center": The entity responsible for maintaining market data.
• "Self-Regulatory Organization": An organization recognized by the Authority to regulate its members.
• "Market Operator": The entity responsible for operating the market.
• "Regulatory Fees": Fees charged by the Authority for regulatory services.
• "Sanctions": Penalties imposed by the Authority for violations.
• "Compliance": Adherence to laws and regulations.
• "Disclosure": The act of making information available to the public.
• "Insider Trading": Trading based on material non-public information.
• "Market Manipulation": Actions intended to distort the market.
• "Fraud": Deceptive practices in the market.
• "Misrepresentation": False statements in the market.
• "Omission": Failure to disclose material information.
• "Conflict of Interest": A situation where a person's interests conflict with their duties.
• "Confidential Information": Information not available to the public.
• "Market Abuse": Any behavior that undermines market integrity.
• "Systemic Risk": Risk of collapse of an entire market or market segment.
• "Liquidity": The ability to buy or sell assets quickly without affecting price.
• "Volatility": The degree of variation of a trading price series over time.
• "Correlation": The statistical relationship between two variables.
• "Diversification": Spreading investments across various financial instruments.
• "Hedging": Risk management strategy to offset losses.
• "Leverage": Use of borrowed funds to increase potential return.
• "Margin": The collateral required to maintain a position.
• "Settlement": The process of completing a trade.
• "Clearing": The process of determining obligations between parties.
• "Settlement Date": The date on which a trade is settled.
• "Trade Date": The date on which a trade is executed.
• "Order": A request to buy or sell securities.
• "Bid": The highest price a buyer is willing to pay.
• "Ask": The lowest price a seller is willing to accept.
• "Spread": The difference between the bid and ask prices.
• "Volume": The number of shares traded.
• "Turnover": The total value of shares traded.
• "Index": A statistical measure of change in a market.
• "Benchmark": A standard against which performance is measured.
• "Portfolio": A collection of financial investments.
• "Asset": A resource with economic value.
• "Liability": A company's financial debts.
• "Equity": The value of shares owned by shareholders.
• "Debt": Money borrowed that must be repaid.
• "Interest": The cost of borrowing money.
• "Dividend": A distribution of profits to shareholders.
• "Capital Gain": Profit from the sale of an asset.
• "Capital Loss": Loss from the sale of an asset.
• "Tax": A compulsory contribution to state revenue.
• "Fee": A payment for a service.
• "Fine": A monetary penalty.
• "License