Major Developments of 2021

Major Developments of 2021 

–During the year 2021, the General Directorate of Securities reviewed the Instructions of Issuance of Securities, where a partial review of the Instructions was made, and a circular was issued regarding the amendment of some articles to Instructions No. (5) of 2008 regarding the Issuance of Securities.

–Listing of the Tamkeen Insurance Company, a public shareholding company, on the Palestine Exchange.

–Suspension of trading on the securities of Al-Ahlia Insurance Group Company for violating the provisions of the Securities Law and the legislation in place.

–Following up the procedures for reducing the share capital of the Arab Hotels Company, and resuming trading of its securities.

–The approval of the Supreme Sharia Supervisory Board in its meeting No. 4/2021 to launch the Islamic index in Palestine in accordance with the regulations of the Palestinian index of companies listed on the Palestine Exchange, which was submitted by the General Administration of Securities.

–The Board of Directors of the Capital Market Authority approved the executive management’s recommendation relating to organizing the PCMA in dealing with foreign currencies and precious metals in foreign stock exchanges, in accordance ith the Securities Law No. (12) of 2004 and Capital Market Authority Law No. (13) of 2004.

–Directing the Palestine Exchange on how to deal with the trading accounts of legal persons registered with the other side.

–Developing the reports of the General Administration of Internal Securities, by preparing technical brochures that monitor the performance of member securities companies and their investment orientations at the market level, and at the level of local and foreign securities.

–Contributing to the regulation and development of the use of financial technology in non-banking financial activities, represented in licensing new innovation platforms, and holding a meeting with the securities sector regarding the PCMA’s vision, policy and efforts in financial technology.

–Participation in the Global Investor Week, and the implementation of specialized awareness programs, where two working papers were presented; one addressing the role of sustainable finance in achieving economic development, and the other relative to controls over market operations.

Monitoring the Capital Market Institutions

The General Directoare of Securities, through the Market Operations Supervision Department, continued its efforts to provide an appropriate climate for investment in securities, and to promote the Palestinian capital market in accordance with the highest international standards and practices, specifically the principles emanating from the International Organization of Capital Markets Supervisory Authorities (IOSCO), through:

• Monitoring of Trading: by spotting violations of behaviours and dealings of some listed securities, and dealing with them and with clients investing in such securities in accordance with the regulatory controls. As for the regulatory warnings that affect the closing prices of securities, 21 cases of price impact cancellation were dealt with as a result of the sudden change in the closing price of the security during the last five minutes of the trading session. The action of cancelling the price impact aims to enhance investors’ transparency of trading and to protect the rights of dealers in the security.
• Financial Analysis: by reviewing financial disclosures and periodically following up on the solvency reports of member securities companies, to ensure their compliance with the Securities Law and the solvency instructions issued by the PCMA, in a way that ensures maintaining the safety and stability of the member securities companies’ positions, and preserving the funds and rights of their investors.
• Inspection: the inspection team is considered the monitoring arm over the entities and parties licensed by the PCMA. During the 2021, the following was conducted:
• Completing the implementation of the two inspection rounds according to the approved plan on risk-based inspection and on combating money laundering and terrorist financing.
• Enforcement of the specialized inspection relative to complaints, in implementation of the follow-ups established by the PCMA’s Board of Directors.
• Issuing circulars to member companies requesting them to provide the PCMA with the ratification of portfolio and account statements of a number of their clients for the year 2020. The sample was selected on the basis of the most frequently traded accounts, and the most long-standing accounts in terms of receivables.
• Issuing circulars to member securities companies requesting them to provide the PCMA with an indication that their Board of Directors are informed of the PCMA inspection reports, as well as the corrective measures intended to be taken.
• Sending the inspection team for specialized tours at the request of the Financial Follow-up Unit.
• Violations and Complaints: During the year 2021, the General Directoarate of Securities dealt with a number of violations by licensed parties and insiders in listed companies as a result of non-compliance with the applicable disclosure instructions, whereby legal measures were taken against such violators, in accordance with the Securities Law and the relevant instructions issued by virtue thereof. In addition, the Administration dealt with 17 written complaints, based on which the PCMA took the legal measures for the purpose of protecting the rights of dealers in the market.