Capital Markets Authority: Continuation of the revocation of citizenships from the 1965 Census in stock trading
Ali Ibrahim
The Capital Markets Authority issued a circular confirming the continued right to trade, buy, and sell shares, sukuk, and securities for individuals whose Kuwaiti nationality has been revoked, in accordance with Article (5/Third), Category 1965, and those who acquired it through dependency.
This comes in the Authority’s Circular No. (15) of 2026, addressed to all entities and individuals subject to the provisions of Law No. (7) of 2010 concerning the establishment of the Capital Markets Authority and the regulation of securities activities, and its executive regulations and amendments, regarding the exercise of the right to trade, buy, and sell shares, sukuk, and securities by those whose Kuwaiti nationality has been revoked under Category 1965.
Based on the esteemed Cabinet Decision No. (296), issued during its meeting No. (11/2024) held on 19/03/2024, which assigned the Central Agency for Addressing the Status of Illegal Residents, in coordination with government entities and other appropriate bodies, the task of organizing, amending, and monitoring the status of those whose Kuwaiti nationality has been revoked, and in reference to the Agency’s letter received by the Authority on 31/08/2026 concerning the processing of the status of individuals whose Kuwaiti nationality was revoked and who are included in Category 1965, and following previous circulars, specifically Circular No. (20) of 2025 and Circular No. (23) of 2025, as well as the clarification issued by the Authority on September 24, 2025, regarding them.
The Capital Markets Authority draws the attention of all licensed persons and entities subject to the provisions of Law No. (7) of 2010 concerning the establishment of the Capital Markets Authority and the regulation of securities activities, and its executive regulations and amendments, to the necessity of full compliance with the regulations governing the status of those whose Kuwaiti nationality has been revoked and who are included in Category 1965, and those who acquired it through dependency, regarding the rights and benefits granted to them, as follows:
1. The provisions of Paragraph 7 of the esteemed Cabinet Decision No. (1355) of 2025 shall apply to those whose Kuwaiti nationality has been revoked under Article (5/Third), Category 1965, and those who acquired it through dependency, concerning the continuation of the right to trade, buy, and sell shares, sukuk, and securities on the securities exchange or the individual and corporate securities markets owned by persons whose nationalities have been revoked, and any decisions issued by the Cabinet on this matter.
2. Continued reliance on the verification and authentication mechanism for personal data and information submitted by this category via the original identity document, certificates issued by the Central Agency for Addressing the Status of Illegal Residents, or the civil ID issued through the "Huwiyati" application, provided they are valid and electronically verified, without conflicting with the decisions and instructions regulating... and allowing the provision of up to a 25% discount on brokerage commissions.
The Capital Markets Authority confirmed that licensed persons are permitted to offer discounts on financial brokerage commissions, with a maximum cap not exceeding 25% of the commission value, in accordance with their approved policies and procedures, effective from January 1, 2027.
The Authority, in its Circular No. (16) of 2026, addressed to licensed persons conducting the activity of a registered qualified broker on the securities exchange, regarding the organization of discounts on financial brokerage commissions, stated that offering such discounts remains at the discretion of the licensed person, with no obligation to grant them. Furthermore, this mechanism does not apply to discounts granted to market makers, who shall continue to enjoy the prescribed discounts in accordance with the rules of the Kuwait Stock Exchange.
In this regard, she emphasized that individuals must establish clear and organized policies and procedures regarding the mechanism for granting commission discounts and the criteria for eligibility, ensuring transparent disclosure to clients and fair application.
