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

Thursday, August 30, 2018 at 5:50 PM

Thu Aug 30, 2018 17:50

The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 16/11/1439H corresponding to 29/07/2018G on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Najla bint Salah bin Abdurrahman Almutlaq, Abdullah bin Mohammed bin Abdullah Alothman and Maryam bint Abdulaziz bin Ali Alahmed. The verdict concluded with the conviction of Najla bint Salah bin Abdurrahman Almutlaq for violating paragraph (a) of Article 50 of the Capital Market Law, and paragraph (b) of Article 6 of the Market Conduct Regulations, Abdullah bin Mohammed bin Abdullah Alothman for violating paragraph (a) of Article 50 of the Capital Market Law, and paragraph (a) of Article 5 of the Market Conduct Regulations, and Maryam bint Abdulaziz bin Ali Alahmed for paragraph (a) of Article 50 of the Capital Market Law, and paragraph (a) of Article 6 of the Market Conduct Regulation. The aforementioned were convicted for the disclosure and insider trading on the shares of the Saudi United Cooperative Insurance Company, during the membership of Abdullah bin Mohammed bin Abdullah Alothman in the company's Board of Directors. The Appeal Committee's decision included the imposition of a number of fines on the defendants, detailed as follows:

First defendant: (Najla bint Salah bin Abdurrahman Almutlaq)
1.    Imposing a fine on her amounting (50,000) Fifty Thousand Saudi Riyals.
2.    Prohibiting her from trading by buying shares of the companies listed on the Exchange for her own account or in favor of others, for a period of one year, provided that trading through investment funds with the Autherised Persons shall be excluded.
3.    Paying to the Capital Market Authority's account the illegal gains on her portfolio, resulted from the violating trading, amounting (639,636.75) Six Hundred Thirty Nine Thousand, Six Hundred Thirty Six Saudi Riyals and Seventy Five Halalas.

Second defendant: (Abdullah bin Mohammed bin Abdullah Alothman)
1.    Imposing a fine on him amounting (100,000) One Hundred Thousand Saudi Riyals.
2.    Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years, provided that trading through investment funds with the Autherised Persons shall be excluded.
3.    Prohibiting him from working in companies listed on the Exchange for two years.

Third defendant: (Saud bin Habbas bin Faraj Alharbi)  
1.    Imposing a fine on him amounting (50,000) Fifty Thousand Saudi Riyals.
2.    Prohibiting her from trading by buying shares of the companies listed on the Exchange for her own account or in favor of others, for a period of one year, provided that trading through investment funds with the Autherised Persons shall be excluded.
3.    Paying to the Capital Market Authority's account the illegal gains on her portfolio, resulted from the violating trading, amounting (1,910,643.45) One Million, Nine Hundred Ten Thousand, Six Hundred Forty Three Saudi Riyals and Forty Five Halalas.

The Capital Market Authority affirms on its devotion to implement the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices.