The Saudi Capital Market Authority (CMA) has released a new draft bill aims at regulating the merger and acquisition process for listed companies.

CMA said the bill was prepared after a through review of international norms in this field. It asked those concerned to express their views about the draft bill before it is approved, adding that all suggestions will be considered.

The draft bill fully regulates M&As. It also aims at protecting investors, granting equal information, fully and fairly disseminating data and information and giving sufficient time for investors to consider the situation before taking decisions.

The bill covers a number of issues like obliging the M&A parties to take independent consultation from a CMA-licensed financial adviser, regulating acquisition packages that include conflicts of interest, setting timetables of the acquisition process and others.

A number of financial advisers said that the present behaviour of stock market speculators and hasty decisions in buying and selling of shares would remain, as was the case in 2006.

Mohammad Al Qah'tani, a financial analyst, said that unlike last year, the stock market would not undergo significant changes.

He attributed this to the lack of any serious attempts by the agencies monitoring and regulating the market, and added that the concerned authorities should put an end to the illegal practices of senior speculators.

He indicated that fear among shareholders will continue this year if no new reforms were made.