Securities administration – Saudi Arabia
Income collection
Market Record date | Ex-date | Basis for entitlement | Standard interest calculation rule | |
Debt securities | Usually seven calendar days before payment date | Usually one business day before record date | Settled position on record date | Actual/360 |
Equities | Usually seven calendar days before payment date | Ex-date is one day before the record date | Settled position on record date | Not applicable |
The Saudi Exchange is not the central paying agent as this activity is managed by the issuer’s designated paying agent. Edaa has started to offer issuers a paying agent service in mid-2019. A central paying agent service model may be offered at some point in the future.
Corporate actions
Most common corporate actions
The main source of corporate actions information is Saudi Exchange itself. The most common events are cash dividends, bonus issues, rights issues and stock splits. The entitlement computation takes place based on the shareholder's position as at record date according to the CSD's records and is based on the settled position.
The ex-date for trading in respect of a corporate action benefit is one business day prior to the record date.
Organisation of AGM/EGMs
Meeting announcements must be made via the Saudi Exchange website, the issuer’s website and via two widely circulated newspapers and the announcement should be made at least 20 days prior to the meeting taking place.
Agendas must be published by the issuer in Arabic and most of the larger issuers now provide an English translation as well.
Voting entitlement is determined by the settled position on the announcement date, split voting is allowed and there are no restrictions affecting non-resident investors with regard to their voting rights in their investments.
Votes are generally cast online via Saudi Exchange's e-voting platform, Tadawulaty.
The issuer must make the minutes of the meeting available to the CMA within 10 days of the meeting date. The issuer must also immediately inform Saudi Exchange of the results and the results are posted on the Saudi Exchange’s website.