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Qatar issues new listing rules for its growing secondary market, say reports


Qatar's financial regulator has issued new rules on stock market listings for its secondary market to allow smaller companies to list shares there, according to media reports.

Regional media outlet Gulf Times said that the Qatar Financial Markets Authority (QFMA) had adopted the new rules after in-depth discussions with national stock exchange the Qatar Exchange. The secondary market is used to trade previously-issued financial instruments including stock, bonds, options and futures.

QFMA chief executive Nasser Ahmed al-Shaibi told the publication that the new rules would allow newly-established small and medium-sized enterprises (SMEs) to list shares on the Qatar Exchange.

He said that he hoped the new rules would attract greater levels of foreign investment into Qatar.

The new rules have yet to be translated into English but include various chapters related to definitions, disclosure rules, suspension, cancellation and re-listing of companies, Gulf Times said.

Corporate law expert Alan Wood of Pinsent Masons, the law firm behind Out-Law.com, said that the adoption of the new rules was a precursor to the Qatar Exchange's expansion into the venture capital market. The rules will cover venture capital along with existing categories including government bonds and other debt instruments, he said.

"The move by the QFMA to introduce these new rules is a further reflection of the stiff competition that remains between the various regional exchanges to capture that all-important volume and liquidity. The QFMA will hope that the introduction of these new rules will enhance its reputation both regionally and internationally," he said.

Adopting international best practices in drafting the new rules also reflects the development of a number of Gulf stock regional markets which see the need to ensure integrity and transparency in the listing process, he said.

Listing requirements are the initial standards a company must meet before it can begin trading on a stock exchange, for example minimum number of publicly traded shares or total company value. An initial public offering (IPO) is the first sale of stock by a private company to the public.

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