The Capital Markets Authority (CMA), which regulates Boursa Kuwait, has warned companies failing to provide audited and approved financial statements that they could face suspension from trading on the country’s stock exchange.
On Tuesday, the CMA asked the tardy companies to provide their audited financial statements for the third-quarter of 2019 within three days or face suspension.
The CMA is reportedly tracking companies that are suspected of being less than straightforward in their past financial disclosures and those that have repeated violations against their names. Some of these companies have also had complaints registered against them in recent days for various financial and legal violations.
Among the complaints lodged against such companies are financial abuses, including the manipulation of data, illegal transfer of funds, and financing activities that do not come under the company’s licensed work. In addition, some companies have been accused of incurring losses that amount to nearly 75 percent of the company’s capital, while other companies have reportedly made fraudulent financial disclosures to CMA and to the public dealing in the stock market.
The Supervisory Section at CMA in cooperation with its Markets and Legal Sectors plays a vital role in monitoring violations and dealing with them in an appropriate legal manner. The CMA said it was committed to ensuring that only honest companies operated on the Boursa and that over the past year and a half the Authority had adopted and enhanced its efficiency in follow-up and inspections.
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