The Kuwait Capital Markets Authority issued a Disciplinary Board resolution imposing a financial penalty of KWD 5,000 on Investment Interests Company for violations of the rules governing dealing in securities. The case arose from a complaint alleging the company sold non-transferable shares during an initial public offering without issuing an official prospectus evidencing the subscriber’s rights, then entered into a share sale at a price different from the subscription price without transferring ownership on the basis that the shares were non-transferable. The complaint also alleged the company retained and managed the shares without a management contract since 2005, refused to enable their transfer or sale, and did not provide periodic reports or information, citing a lack of documents proving the investor’s rights. The violations cited included provisions in Module Eleven and Module Seven of the Executive Bylaws of Law No. 7 of 2010 and its amendments.
Kuwait Capital Markets Authority 2025-05-19
Kuwait Capital Markets Authority disciplinary board fines Investment Interests Company KWD 5,000 for securities dealing rule breaches
The Kuwait Capital Markets Authority imposed a KWD 5,000 penalty on Investment Interests Company for securities dealing violations. The company was found to have sold non-transferable shares without a prospectus and engaged in unauthorized share management since 2005. Violations pertained to Modules Eleven and Seven of the Executive Bylaws of Law No. 7 of 2010.