The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
Capital Market Authority issues a bylaw to regulate agreements of offsetting and arrangements of financial guaranties
Capital market authority issues a new regulatory bylaw that aims at regulating offsetting agreements and the arrangements of financial guaranty related to qualified fiscal contracts. It ensures the enforceability of those agreements outside the scope of bankruptcy procedures, but through its context. That is made in coordination with the central bank and the ministry of commerce, according to the capital market and the bankruptcy regulations.
The bylaw defines the basic concepts, such as offsetting, qualified fiscal contracts, guaranty and multi-party offsetting agreement. It also defines the rights of agreement parties- especially non-bankrupted party, in the offsetting performance and keeping guaranties, even in a case that the other party begins bankruptcy procedures at that time of amends those rights.
The bylaw asserts that the rules of the offsetting agreements and the arrangements of fiscal guaranty are enforceable and applicable according to their conditions and aren’t affected by bankruptcy unless in the cases of fraud which is confirmed by clear evidence.
The bylaw includes an annex for qualified financial contracts, that includes more than 25 categories of financial contracts and dealings, for example: currency derivatives, contracts of goods, credit derivatives, re-purchasing agreements, dealings that agree with the Islamic law, such as Murabaha and compromise.
The bylaw represents a critical regulating step for supporting financial stability in the KSA, and reinforcing confidence in fiscal dealings among establishments, especially emergency or insolvency cases.
Capital Market Authority of the KSA approves amendments to the regulations for foreign investment in securities
The regulations aim at regulating foreign investment in securities, debt instruments, and investment funds. The aims of those amendments are as follows:
Motivating investment, encouraging foreign capital flow to the Saudi market.
Raising attractiveness and competence: making the market more attractive for foreign investors and improving operating competence.
Reinforcing competition: reinforcing Saudi market competition at both national and international levels.
The amendments include:
Extending investment channels: extending foreign investment scope by permitting foreign natural and legal identities, whether residents or non-residents to invest in securities, debt instruments and investment funds, considering those regulations.
Limitations on Ownership percentage: no non-resident foreign investor (in the exception of the foreign strategic investor) shall own 10% or more of any shares of any registered source or transferable debt instruments of the source. Also, foreign investors collectively (of all categories, whether residents or non-residents, except foreign strategic investors) shall not own more than (49%) of the shares in any registered source or its transferable debt instruments.
Categories exempted from the assets condition:
There are exempted categories from the required minimum assets value condition (a million riyals) for the qualified foreign investor, including: retirement funds, Waqf funds, customers of market makers, governmental authorities, central banks, sovereign funds and international organizations and their foundations.
Facilitating mutual agreements:
Capital market foundations are permitted to make exchange agreements with foreign counterparties only for the interests of non-resident foreign investors, to transfer the economic interests of the market securities to those investors as the end beneficiaries through exchange deals made under the exchange agreements.
Discharge and grievance:
The authority may discharge any person from the applicability of any of those regulations whether entirely or partly, by an application or an initiative from him. Any person who is governed by those regulations may file a grievance to the committee from any decree or an action taken by the authority according to those regulations.
Exceptions from the regulations:
The regulations aren’t applicable on the GCC nationals.
Those amendments are considered of the efforts to make the Saudi capital market an attractive and motivating investment direction according to the KSA vision 2030 that aims at variation of national income sources.
Legal Information
In labor cases, in a case that the employee or the employer doesn’t file the claim in 12 months from the date of the employment relation completion, the claim shall fall automatically, but there are exceptions that permit accepting the claim after that period, the exceptions include:
The presence of a justified excuse that prevents filing the claim (sever disease or imprisonment)
In a case of the employer promise to settle down the rights, but he doesn’t respect his promise.
In a case that the employee doesn’t recognize his rights because of the employer deceit.
In a case that the claim is for amounts which are reserved at governmental authorities, such as social insurance or banks.
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