An announcement of the issuance of the CMA Board Resolution Approved the Amended Real Estate Investment Traded Funds Instructions

Sunday, October 28, 2018 at 6:19 PM

Sun Oct 28, 2018 18:19

In continuance to the Capital Market Authority's role in developing and regulating the capital market and protecting investors, and line with Saudi Vision 2030, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its Resolution approving the amended Real Estate Investment Traded Funds Instructions, and the Instructions shall be effective from its publication date.
It's worth mentioning that the amendments intended to support the principal of investors protection, regulate the aspects needed to enhance the investment in these funds and set the rules which will help to mitigate the risks relevant to investing in the Real Estate Investment Traded Funds.
Some of the notable amendments are found in prohibiting persons whom their names, upon establishment, are stated in the fund's Terms and Conditions as holders of (5%) or more of the fund's units, from disposing of the units which they subscribed with during the first year of the trade commencement of the relevant fund, besides additional disclosure requirements, such as the disclosure of significant unitholders' dealings in the Exchange and including the market rents assessments to the Accredited Valuers Report and obliging the fund manager to publish it. In addition to the increase of the minimum amount for the fund's establishment from (100) million Saudi Riyals to become (500) million Saudi Riyals. 

The amended Instructions can be viewed via the following link:

التعليمات الخاصة بصناديق الاستثمار العقارية المتداولة
Real Estate Investment Traded Funds Instructions