The Capital Market Authority calls for public consultation on the development of investor categories in the parallel market

Zawya

26-03-2025

​ The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the draft "Development of Investor Categories in the Parallel Market", which includes proposed amendments to the categories of investors permitted to invest in the Parallel Market. The consultation period will last for 30 calendar days, ending on 30/10/1446H, corresponding to 28/04/2025.
The proposed draft aims to develop the investor categories in the Parallel Market – Nomu by easing the criteria and requirements that investors must meet to be eligible to trade and invest in the market, which is expected to have a positive impact on the market.
The key proposed amendments include revising the term "Qualified Investor in the Parallel Market" to refer exclusively to the categories eligible to invest in the market. The amendments also ease the criteria imposed on individual investors wishing to enter and invest in the Parallel Market – Nomu. Under the proposed criteria, an investor would be required to have completed transactions amounting to SAR 30 million during the past 12 months, with the removal of the requirement to execute at least ten transactions per quarter. Previously, the condition required completing transactions worth SAR 40 million through at least ten transactions during the past 12 months. This means eliminating the quarterly transaction count requirement and reducing the minimum transaction value by SAR 10 million.
In addition, the proposed amendments include classifying the board members and members of the committees emanating from the board of directors in companies listed in the Parallel Market as qualified investors allowed to invest in the Parallel Market.
The CMA emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of approving the final Proposed Amendments, which in turn shall contribute to the aim of enhancing and developing the regulatory environment. Opinions and comments can be received through any of the following:
The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Canter through the following link: (istitlaa.ncc.gov.sa).
The prescribed form through the following email: ([e-mail])
The Draft can be viewed via the following link:
The Draft to Develop the Categories of Investors in the Parallel Market
https://cma.org.sa/RulesRegulations/Consulting/Documents/The_Draft_to_Develop_the_Categories_of_Investors_in_the_Parallel_Market_en.pdf
Prescribed form for providing comments
https://cma.org.sa/RulesRegulations/Consulting/Documents/Public_Consultation_Form_25_mar.docx
Contact:
Capital Market Authority
Communication & Investor Protection Division
[e-mail]
About CMA:
The Capital Market Authority (CMA) in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought it into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.
For more information about CMA, please visit the official website: www.cma.org.sa