The new regulations are part of a series of rulings this year from the Capital Markets Authority (CMA), which is trying to boost activity on the sluggish market as well as clamp down on any suspicious dealings.
Under the new rules for listing on the main market, joint-stock companies need annual profits of 5 percent of their capital, instead of the previous 7.5 percent, the CMA said.
Shareholders' equity needs to be 110 percent of the capital instead of 115 percent, the CMA said in a statement on Saturday. Companies also need to have operating income equal to 75 percent of total revenues, it added.
The new regulations will help companies list on the exchange and raise capital for expansion, the CMA said. "These amendments will also broaden the shareholder base and create an effective trading environment," it added.
Kuwait had its last stock listing in September with Islamic lender Warba Bank, a sale which was initiated by the government. It has not had any company-driven IPOs since before the 2008 global financial crisis.
The CMA will also give greater flexibility to companies that cut their capital, by giving them a deadline to make necessary changes, the statement said, without elaborating.
The same rules also included a section on companies that wish to withdraw from the stock market. If the board wants the company to exit, it will now be able to make an offer to buy the stock of smaller shareholders.
Withdrawals from the stock market have been a problem for small shareholders who had found themselves unable to sell their stakes when companies exited the bourse.