The Capital Market Law

a) The Authority shall be the agency responsible for issuing regulations, rules and instructions, and for applying the provisions of this Law. To achieve these objectives, the Authority shall: 1) Regulate and develop the Exchange, seek to develop and improve methods of systems and entities trading in Securities, and develop the procedures that would reduce the risks related to Securities transactions. 2) Regulate the issuance of Securities and monitor Securities and dealing in Securities. 3) Regulate and monitor the works and activities of parties subject to the control and supervision of the Authority. 4) Protect citizens and investors in Securities from unfair and unsound practices or practices involving fraud, deceit, cheating or manipulation. Page 8 of 60 5) Seek to achieve fairness, efficiency and transparency in Securities transactions. 6) Regulate and monitor the full disclosure of information regarding Securities and their issuers, the dealings of informed persons and major shareholders and investors, and define and make available information which the participants in the market should provide and disclose to shareholders and the public. 7) Regulate proxy and purchase requests and public offers of shares. 8) License the establishment of special purposes entity, and regulate and control its business, uses, issuance of Securities, the registration in its registry established by the Authority and the provisions of its articles of incorporation, and regulate the provisions of the registration of funds transferred to it, including documentation of the rights thereof and its legal standing against others, and the issuance of rules governing thereof. 9) Regulate the pledge of Securities and its enforcement. b) The Authority may publish a draft of regulations and rules before issuing or amending them. The regulations, rules and instructions issued by the Authority shall be effective in the manner prescribed under their provisions. c) For the purpose of conducting all investigations which, in the opinion of the Board, are necessary for the enforcement of the provisions of this Law and other regulations and rules issued pursuant to this Law, the members of the Authority and its employees designated by the Board are empowered to subpoena witnesses, take evidence, and require the production of any records, papers, or other documents which the Authority deems relevant or material to its investigation. The Authority shall have the power to carry out inspections of the records or any other materials, whoever the holder may be, to determine whether the Page 9 of 60 person concerned has violated, or is about to violate any provision of this Law, the Implementing Regulations or the rules issued by the Authority. d) The special purposes entity shall have legal personality and financial autonomy, and it shall cease to exist with the end of the purpose for which it was established for in accordance with the rules and regulations issued by the Authority.