Saudi Arabia allows rights trade on stock market

JEDDAH, Saudi Arabia Sun Nov 11, 2012 8:38pm IST

JEDDAH, Saudi Arabia (Reuters) - Saudi Arabia's Capital Market Authority is allowing subscription rights for share offers to be listed and traded on the Saudi stock market, as it modernizes the market in preparation to permit the entry of foreign investors.

"This framework aims to add further protection and flexibility to those investors that do not have the intention to subscribe to their entitlements," the regulator said in a statement announcing the initiative on Sunday.

Abdulhamid abu Dahesh, a Saudi financial advisor, said the new framework was similar to those in developed European stock markets, and was a step towards trading practices in advanced financial systems.

Saudi Arabia has been making preparations to open its stock market, the Arab world's largest, to direct investment by foreign institutions but has not yet announced a date for the reform, apparently because it is concerned about the possibility of destabilizing the market.

(Reporting by Asma Alsharif; Editing by Andrew Torchia)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Top News

REUTERS SHOWCASE

Market Weekahead

Market Weekahead

Sensex, Nifty seen rangebound ahead of derivatives expiry.  Full Article 

India-WTO Standoff

India-WTO Standoff

India threatens to derail WTO deal, prompts angry U.S. rebuke  Full Article 

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

IPO Probe Ends

IPO Probe Ends

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

World Stocks

World Stocks

Goldman Sachs downgrades stocks to neutral for short term  Full Article 

Wearable Gadgets

Wearable Gadgets

Swatch plans fitness-based touch wristwatch, CEO tells paper.  Full Article 

Box Office Business

Box Office Business

'Lucy' pummels 'Hercules' to win U.S. weekend box office race.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage