Kuwait’s newly formed regulator Capital Markets Authority (CMA) has given investment funds until March 2012 to sort out their ownership in financial securities, the state news agency said.
According to the CMA bylaws, which came into effect in March but still not fully implemented, an investment fund cannot own more than ten percent in a single security.
“The CMA’s decision comes from its responsibility towards national economy and after following economic developments and the situation of Kuwait’s stock market,” KUNA cited a CMA statement late on Monday.
Kuwait’s benchmark which fell 1.6 percent on Monday after comments by the central bank governor, has been roiled by investor concerns of new regulations proposed by the market watchdog.
The Gulf state is home to a large number of investment firms which have been hard hit by the global financial crisis.
Sheikh Salem Abdul Aziz Al Sabah, the OPEC member’s central bank governor was quoted by KUNA saying that the country’s economy is undergoing imbalances which needed to be corrected, but did not give more details.
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