Boursa Kuwait agreed last weekend to register National Shooting Company among the continuous trading companies to trade on the unlisted companies’ platform via the OTC market.

The Capital Markets Authority (CMA) issued a resolution to delist the company on 31 March,  one day after the expiry of a deadline granted to the company to address the reasons for its suspension including: submitting the financial statements for FY2020, provide an approved plan to address the accumulated loses and an approved plan on addressing the qualified opinion and observations contained in the external auditor’s report.

Unlisted securities trading system allows all trading procedures that may result in profits and losses, and the transfer of ownership to take place through licensed brokerage firms that are subject to the rules of the unlisted securities trading system.

According to this system, investors are responsible for their investment decision and any associated risks, as well as the responsibility to ensure the soundness of the traded company’s financial and legal position, noting that official approvals are obtained from the boards of directors of these companies to trade their shares through the unlisted shares platform.

Companies notify the OTC of its intentions to comply with the trading system. In classifying unlisted companies traded on the OTC platform, Boursa Kuwait relies on the number of shareholders who own a share in the capital of the traded company.

Companies with more than 50 shareholders are presented with two options for trading on the exchange.

The first allows all listed companies to trade their shares through special deals, i.e., the deals agreed upon between their parties.

The second is limited to companies with less than 50 shareholders, as it allows transactions to be conducted through the buying and selling platform on the exchange.