Kuwait's bourse has vetoed a bid by Securities Group Company for about five per cent in telecom group Zain, a bourse official said.

The move to buy shares by the group is seen as a protest against the conduct of a bid for a much bigger stake in Zain.

The official said the bourse had ruled against investment firm Securities Group's attempt to buy the shares, made in a newspaper advertisement published on Sunday, as being in contravention of its regulations.

'Any buying or selling transaction of shares above a 5 per cent stake in a company should take place through the stock exchange,' the official said.

Etisalat last month bid 1.7 Kuwaiti dinars a share for a 46 per cent stake in Zain in a deal worth just under $12 billion.

The bid won the backing of major Zain shareholder Karafi Group.