المادة 100: Private Placement of a Foreign Fund and Eligibility of Investors

Article 100: Private Placement of a Foreign Fund and Eligibility of Investors

a. An offer of securities issued by a foreign fund is a private placement where the offerees are investors under the categories of institutional and qualified clients, and if the maximum amount payable per offeree (from investors of the retail clients’ category) is not more than (200) thousand Saudi Riyals, or an equivalent amount.

b. Upon offering securities issued by a foreign fund, the cash subscriptions in the fund from retail clients in the Kingdom must not exceed (50%) of the total cash subscriptions in the fund.

c. The Authority may, in circumstances other than those described in Paragraph (a) of this Article and upon a request from a distributor seeking to make an offer of securities issued by a foreign fund, determine that such an offer shall be treated as a private placement subject to compliance with such limitation as the Authority may impose.