RIYADH: Saudi Arabia’s Capital Market Authority has signed off on new rules aimed at attracting more investment into the Kingdom’s economy. The main changes include updating the prudential requirements for carrying out any securities business, such as credit, market, operational and concentration risks. There are also amendments to the methodology used to calculate the minimum limit of capital adequacy, and changes to the requirements for investment management, arrangement, and advisory activities to be based on expenses. The Amended Prudential Rules will come into effect on April 1 2023. According to a report on SPA: “Amending the Prudential Rules comes as part of the CMA"s keenness, since its inception, on continuously regulating and developing the entities, subject to the CMA"s control, which carry out any of the securities business, enhancing the control procedures and prudential level of such entities, in addition to raising the efficiency of the resources management of such institutions to provide optimum services to their customers in accordance with the best international practices.” In 2013 the CMA initiated the application of Prudential Rules on institutions carrying out the securities activities with the aim of specifying a minimum limit of capital requirements to ensure the availability of required financial resources and limiting the size of risks that may be incurred. The decision comes a month after the CMA approved regulations put forward by the Saudi stock exchange involving market-making procedures. That move, in December 2022, aimed to regulate the activities of listed securities market-making, through providing continuous listed securities buy/sell orders during the market open session to provide liquidity to the relevant listed securities. Also, among the conditions of the market-maker, it shall have a membership of the market or derivatives market and shall have the written policies and procedures to separate between the market making activities and any other activities practiced by the maker.