The Kuwait Capital Markets Authority issued a Disciplinary Board resolution imposing a warning on Gulf Securities Custody Company for violating securities dealing rules relating to the handling and disclosure of mortgaged assets in execution proceedings. The breach concerned Article (10-9) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and Circular No. (3) of 2022. The Authority found the company failed to sign the mortgage on company-owned assets pledged to a mortgaged creditor in the financial disclosure declaration of the execution file and failed to notify the mortgaged creditor of the seizure by another creditor. It also found that mortgaged unlisted securities were sold at the specified auction and thereafter without indicating this in the disclosure declaration issued by the seizure holder and without notifying the mortgaged creditor, which contributed to the Capital Execution Judge cancelling the auction for the unlisted shares in the relevant execution file.
Kuwait Capital Markets Authority 2025-08-28
Kuwait Capital Markets Authority disciplinary board issues warning to Gulf Securities Custody Company for mortgage disclosure and notification breaches
The Kuwait Capital Markets Authority issued a warning to Gulf Securities Custody Company for breaching securities dealing rules concerning mortgaged assets in execution proceedings. Violations included failure to sign mortgages on company-owned assets and inadequate notification to mortgaged creditors, leading to the cancellation of an auction for unlisted shares.