The Shoura Council on Wednesday called on the Capital Market Authority (CMA) to establish a clearing house and to make amendments in the time period to settle transactions in securities listed on the stock market. The clearing house is a financial institution formed to facilitate the exchange of payments, securities or derivatives transactions as well as to reduce the risk of a member firm failing to honor its trade settlement obligations. Yahya Al-Samaan, assistant president of the Council, urged CMA to develop adequate control mechanisms for Real Estate Investment Trusts (REITs) to protect investors from the leakage of assets and properties that do not have guaranteed returns to REITs. The Shoura underscored the need to develop CMA's governance through the appointment of a CEO instead of the existing system where chairman of the Board acts as CEO. Al-Samaan said the session called upon the CMA management to establish an affiliated committee to supervise the work of the external auditors. The members of the Board shall consist of experts including non-practicing auditors. The Shoura discussed the draft Competition and Government Procurement Law, which was read out by Saleh Al-Khulaiwi, chairman of the finance committee. The law, which consists of 97 articles, aims to regulate the procedures related to business and procurement, and to prevent abuse of power and personal interests so as to protect public funds as well as to achieve best value for public money. — SG/SPA
