What is Mandatory Market Disclosure?
Mandatory market disclosure is the legal obligation on listed companies to publish material information — earnings, board changes, major contracts, significant transactions — through the official channel of the exchange, so all investors get it at the same time.
How It Works
- Continuous disclosure: any material event must be announced as it happens
- Periodic disclosure: quarterly financials, annual reports, governance reports
- Insider information must be disclosed before any trading can occur on it
- Late or selective disclosure is penalized by the regulator
- Goal: a level information playing field for retail and institutional investors
Saudi Context
In Saudi Arabia the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul) jointly run the disclosure regime. Listed companies file announcements through the Tadawul platform; the CMA may fine or suspend issuers for late or misleading disclosures.
Example
A Tadawul-listed real-estate company signs a SAR 1.2 billion contract with a government agency. The CFO and the board secretary file the announcement on Tadawul’s disclosure platform within minutes of the signing, ahead of any internal communication.