An Announcement from the Capital Market Authority regarding the decision issued by The Committee for the Resolution of Securities Disputes Convicting violator of the Capital Market Law and its Implementing Regulations

Monday, May 07, 2018 at 5:20 PM

Mon May 7, 2018 17:20

The Capital Market Authority announces that the Committee for the Resolution of Securities Disputes has issued its decision dated 3/11/1438H corresponding to 26/7/2017G which was effective on 15/6/1439H corresponding to 3/3/2018G  on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Fatima bint Suleiman bin Jasir Alduwaihi. The verdict concluded with the conviction of the defendant of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations when trading the shares of Saudi Arabia Refineries Co., Dallah Healthcare Co., Saudi Industrial Export Co., National Agricultural Marketing Co., Red Sea International Co., United International Transportation Co., Saudi Printing and Packaging Co., Halwani Bros. Co., Salama Cooperative Insurance Co., Alahli Takaful Co., Saudi Re for Cooperative Reinsurance Co., AXA Cooperative Insurance Co., Al Alamiya for Cooperative Insurance Co., Alinma Tokio Marine Co., during the period from 16/3/2013G until 31/7/2013G. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned companies. The Committee decision included the imposition of a number of penalties on the defendant, detailed as follows:
1) Imposing a fine on her amounting to (240,000) Two Hundred and Forty Thousand Riyals.
2) Obliging her to pay (1,706,157.25) One Million, Seven Hundred and Six Thousand, One Hundred and Fifty seven Riyals and Twenty Five Halalas to the Capital Market Authority’s account for the illegal gains achieved as a result of these violations.
3) Prohibiting her from trading (buying) the shares of companies listed in the Saudi Exchange, whether in person or on behalf of others, for three months.

The Capital Market Authority affirms on its devotion to apply the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices, and whoever is affected by these practices can file a suit for compensation to the committee as per Article (57) of the Capital Market Law, this must be preceded by a complaint filed to the CMA. 

(To view the security and the date on which the suspected trading occurred, click here)