Al-Safat Investment adds ‘market maker’ activities to its objectives

KUWAIT: During the postponed extraordinary general assembly of Al-Safat Investment Company, an important amendment to the company’s statute was approved. This amendment, proposed by the company’s Board of Directors, allows the company to engage in “market maker” activities for listed shares, in accordance with the technical rules governing this process. The Assembly, held with 53.362 percent of its members present, voted to amend article 5 of the establishment contract and article 4 of the statute.

These amendments expanded the company’s objectives to include “market maker” activities, in addition to its existing roles such as managing investment portfolios, providing financial and investment consultations, and owning real estate and movable assets, all within the boundaries defined by the law.

Expansion plan

Al-Safat Investment Company is actively pursuing a “market maker” license, in alignment with its expansion plan for investment activities, previously approved by the board of directors. The company’s executive management is implementing this plan according to rigorous standards that align with their aspirations.

The company is committed to developing and diversifying investment channels and services offered to customers, leveraging technological and economic advancements in the field. This strategic move represents a significant step for the company, especially after its listing on the Kuwait Bourse and its merger with Cap Corp, resulting in increased operational activity, revenues, cost management, improved financial balance, and a stronger position in the local market.

It’s important to note that the “market maker” license is issued by the Capital Markets Authority to qualified institutions that meet specific conditions and requirements. These include having a technically proficient team and an advanced electronic system capable of executing market trading operations for specific shares or multiple shares.

Al-Safat’s duties

As a market maker, Al-Safat Investment Company’s primary responsibilities include providing buy and sell orders for shares in the market, ensuring continuous and accurate pricing, and facilitating trading in the required quantities. All of this is done in compliance with the rules established by the Capital Markets Authority and enforced by the market organization. The acquisition of this license at this juncture underscores the confidence the executive team has in Al-Safat’s ability to add significant value to companies and traders alike. This reflects the company’s commitment to meeting the needs of its customers both locally and abroad, highlighting the depth of experience within the company’s team.

Objectives and amendments

The company’s objectives now encompass the buying and selling of shares and bonds, participation in joint investment activities, investment oversight, savings trusts, and market making. Al-Safat remains firmly committed to adhering to Islamic sharia principles and rules, excluding any activities that contradict these principles.

The assembly also approved an amendment to article 17 of the statute, which now reads as follows: “No one, including representatives on the board of directors, the chairman, any board members, or members of the executive administration, along with their spouses or relatives, may have direct or indirect interests in contracts signed with the company, unless such interests are authorized by the ordinary general assembly.”

Furthermore, the amendment stipulates that “the chairman of the board or any board members may not hold positions in two competing companies, participate in activities that compete with the company, or engage in personal or third-party trading within the company’s activities, unless such actions are approved by the ordinary general assembly.”

The amendment also includes provisions preventing the chairman or board members from using privileged information for personal gain and outlines the rules governing the sale or purchase of their shares in the company during their membership. It emphasizes the importance of adhering to Capital Markets Authority regulations regarding the trading activities of board members and the disclosure of such activities. Violations of these provisions may result in dismissal and compensation for any resulting damages.

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