Overview of the Committee

Boursa Kuwait Violations Committee

• In compliance with Article (42) of Law number 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, Boursa Kuwait has established a Violations Committee to handle and decide on violations undertaken by Boursa Members. Article (42) of the above mentioned law describes procedures and mechanisms undertaken by the Violations Committee and defines the decisions that may be rendered by such Committee in pursuance of Articles (1-6) to (1-6-12) of Module No. 4 of the Capital Markets Authority Executive Bylaws as follows:
• The Violations Committee is composed of three members and chaired by a judge delegated by the Supreme Judicial Council. Boursa Kuwait nominates the rest of the members from other than its employees, members of its Board of Directors or those related to it and the Capital Markets Authority approves them provided that they are experienced in financial, economic and legal affairs.  
• This Committee is responsible for viewing Violations committed by Boursa Kuwait’s Members (brokers, listed companies and funds) against Boursa Kuwait’s rules and regulations. Boursa Kuwait’s scope does not include violations committed against the provisions of Law number 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and amendments.
• Boursa Kuwait Violations Committee operates within a defined framework to render its decisions as follows:
  • In the event of identifying a violation against Boursa Kuwait rules committed by a Boursa Kuwait Member, the violator is subject to investigation, which is carried out by Boursa Kuwait legal sector. The violator or his legal representative have the right to attend the investigation and express their defense.
  • After concluding the investigation, the Legal Department issues a recommendation along with the investigation outcome. 
  • The violator is then summoned to attend the Violations Committee hearing and informed about the alleged violations at least three working days prior to the hearing day. The violator or his legal representative have the right to express the defense against the alleged violation before the committee.
  • The Violations Committee then notifies the violator of its decision; the Committee is empowered to impose any of the disciplinary penalties defined under Law number 7 of 2010 and its Executive Bylaws.
  • The Committee will then notify the Capital Markets Authority of the penalties it decided against a Boursa Kuwait Member.
  • Each Boursa Kuwait Member, against whom a decision was rendered, shall have the right to file a grievance to the Capital Markets Authority before its Disciplinary Board within 15 days from receipt of the decision notification in writing.

The disciplinary decisions issued by the Violations Committee shall be enforced immediately unless the Violations Committee decides not to enforce the decisions until the expiry of the appeal deadline, or the Capital Markets Authority Disciplinary Board confirms the decision rendered by the Violations Committee.