As part of plans to develop the capital markets infrastructure in Saudi Arabia, the Saudi Stock Exchange (Tadawul) has recently undertaken two concurrent consultations that look at formalizing rules for short selling as well as securities borrowing and lending. Inclusion of Saudi Arabia in the MSCI indices is driving the development of market infrastructure to provide investors with the opportunity to short sell securities listed in the kingdom.
This includes the provision of securities lending and borrowing services, with the latest draft regulation allowing non-Saudi agent banks to participate directly in this market. As this latest consultation closes shortly, ISLA noted in a statement that its team is “awaiting further refinement of these proposals with great interest”.
Click here to access the Securities Borrowing and Lending consultation.
Click here to access the Short Selling consultation.