The Capital Market Authority (CMA) Grants a Financial Technology Experimental Permit (FinTech ExPermit) to Sukuk Capital Company to Establish a Platform for Offering and Investment in Debt Instruments.
Wednesday, November 04, 2020 at 4:11 PM
Wed Nov 4, 2020 16:11
Based upon the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424H, and reference to the Financial Technology Experimental Permit Instructions issued by CMA in 10/01/2018, which aims to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom. In relation to this, the CMA Board of Commissioners issued its resolution to grant grant Sukuk Capital Company a Financial Technology Experimental Permit (ExPermit) to establish a platform for offering and investment in debt instruments.
Based on this permit, Sukuk Capital Company will enable SMEs to obtain the required funding by arranging the offering of Sukuk to finance projects, and offering them to the collective investors registered in the platform.
CMA would like to highlight that this permit coincides with the launch of the third batch for ExPermit of FinTech innovations which was announced in 25/11/2019, related to securities businesses that fall under the CMA's supervision. The CMA has opened the door for the fourth batch of applications for FinTech ExPermits on 01/10/2020.