KUWAIT: The Capital Market Authority (CMA) called upon all traders at Boursa Kuwait to be careful in regards to recommendations, consultations and analysis that are published in social media platforms about investment or buying or selling shares, investment products or underwriting on the stock market.

This is in continuation of the efforts of the CMA to promote awareness among potential investors about the basics of investments in financial markets and to avoid possible risks related to various types of investments. Urging the public and its stakeholders to be vigilant against fraud and scam attempts, the CMA offers a high-level overview of the CMA rules and regulations that govern the companies on the bourse.

The CMA is keen on raising the awareness level among all investors, including minors and first-time investors about possible methods of fraudsters, and making them aware of regulations and rules that govern investment operations in Kuwait's financial market.

This also includes investment processes regarding issuing or listing their shares on the bourse by licensed persons by the Authority. In this regard, the CMA suggests that the investors should take the recommendations of licensed persons and make sure that they are dealing with only licensed persons in the bourse through visiting the CMA site and check the list of investment consultants who were given licenses to practice and give investment consultations. The licensed persons will be held responsible for any violations or breach of investment rules stipulated by the CMA.

It is worth mentioning that the CMA will resort to legal action against those who deal in stocks without having legal licenses as this is considered among violations of market rule (Law 7/2010) in regards to establishing CMA, regulating the stock market activity and its implementation rules.

The authority urges all traders to be cautious about the qualifications of the presenters of the investment options by regularly visiting the CMA website and check the list of licensed companies. The site has all the data about licensed and unlicensed entities and the types of activities they offer to investors.

This will protect the investors and help them clearly understand the activities of the stock market before signing contracts with any entity that offers services related to activities of stock market and taking an investment decision. It also calls upon the public to expose fraudsters through informing the authority in case they come across any illegal activities by any individuals or establishments operating on the stock market.