(MENAFN - Khaleej Times) A high-level ministerial panel has approved draft rules on initial public offering (IPO) on the GCC markets and has referred them to the Supreme Council for endorsement and implementation.
The ministerial committee comprising board of chairpersons of GCC market regulators during its meeting in Saudi Arabia's capital Riyadh reviewed the recommendations, which were made at the fifth and sixth meetings of the committeee.
The officials okayed the draft unified rules for disclosure of securities listed on the GCC markets and draft unified principles for corporate governance of the companies listed on the GCC markets, said a statement issued by the Securities and Commodities Authority.
The committee referred the draft rules to the Supreme Council for endorsement and implementation on advisory basis for two years to be followed by a review and implementation on compulsory basis.
The GCC panel endorsed in this regard a recommendation concerning awareness campaign on corporate governance. The recommendation also urged market regulators to prepare programmes and organise forums, workshops and conferences.
Also on the agenda was the GCC Secretariat's report on unified rules for listing of securities - stocks, bonds, sukuk and mutual fund units - on the GCC markets. The rules had been approved earlier by the Supreme Council during its 32nd meeting.
The report focused on the progress made in the implementation of the unified rule for listing of securities and suggestions for improving and developing the rules. The GCC Secretariat receives regular reports in this regard biannually from member countries, then classifies and categorises it according to subjects of the rules.
The Securities and Commodities Authority has participated in the third meeting of the Ministerial Committee of Board Chairpersons of GCC Market Regulators. Sultan bin Saeed Al Mansouri, UAE Minister of Economy and SCA Board Chairman, was represented by Abdullah Salim Al Turifi, Chief Executive Officer of SCA.
"A number of draft rules and legal principles of the GCC financial markets were approved at the meeting, which also discussed latest developments on the GCC financial markets and share views on those issues," said Al Turifi in a post meeting comment.
He said the projects discussed during the meeting are an important step forward and of great value addition to the efforts to achieve integration of the GCC financial markets through the unifying of market policies and regulations in the GCC states, adding that the meeting has underscored the need to boost communication and interactions among the various market regulators of the GCC member countries.
He pointed out that the committee looked into five points on the meeting agenda, focusing on issues in support of cooperation among the markets. It discussed all issues under the recommendations made earlier during the sixth Committee Meeting of Heads of GCC Market Regulators, held in Riyadh early May.