Get Well Acquainted with the Duties of Capital Market Authority

The Capital Market Authority (CMA), Saudi Arabia is a Government organization that is responsible for regulating the capital markets of Saudi Arabia. The organization has the financial, administrative and legal independence and reports are directly sent to the Prime Minister. The vast responsibilities of the organization include setting of the rules and regulations, ensuring that the rules are implemented and followed, operating the committee in order to settle the disputes and developing the capital markets. The role also includes the regulation of the Saudi Stock Exchange, known as Tadawul.

Functions of the capital Market Authority
The main function of CMA is to regulate and develop the capital market of Saudi Arabia by issuing the essential rules and regulations. The laws need to be implemented under the provisions of the Capital Market Law of the country. The basic aim of the organization is to create a proper investment environment, reinforce transparency, boost up the confidence and disclosing the standards in the listed companies. The organization also focuses on protecting the investors as well as dealers from the fraudulent and illegal activities occurring in the market.
Duties of CMA

  • Protect the investors and the public from any kind of unfair and illegal practices that includes fraud, cheating, manipulation, deceit and insider trading information.
  • Regulating and monitoring the full disclosure of information in relation to securities and issuers.
  • Developing proper measures which can reduce the risks related to the transactions of securities.
  • Developing, monitoring and regulating the issuance of securities under-trading transactions.
  • Regulate, monitor and develop the financial market and helps promote the appropriate standards as well as techniques for all sections and entities that is involved in Securities Trade Operations.
  • Maintaining the fairness, transparency and efficiency in the process of transaction.
  • Regulating as well as monitoring the activities of entities working under the CMA.

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