Kuwait's parliament approved a much-delayed bill to set up a stock market watchdog on Tuesday, in a move to boost transparency and attract more foreign investors.

The Opec member, home to the Arab world's second-largest stock market, is the only Gulf state which does not have a dedicated authority to supervise its bourse, which has been plagued with irregularities in prices and disclosure.

The authority will oversee initial public offerings, mergers and acquisitions, and will have the power to impose fines of up to KD100,000 ($348,600) and prison sentences of up to five years for violations.

It will have the power to halt or cancel trading in the bourse in case of crisis or unrest which could damage the stock market.

The authority will also be able to do the same in the case of stock manipulation by traders.-Reuters