An Announcement from the Capital Market Authority Regarding the Issuance of the Appeal Committee for the Resolution of Securities Disputes' Decision Convicting a Violator of the Capital Market Law and its Implementing Regulations

Sunday, September 30, 2018 at 4:37 PM

Sun Sep 30, 2018 16:37

The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 30/12/1439H corresponding to 10/09/2018G on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Bassem bin Mohamed bin Abdullah Altuwaijri. The verdict concluded with the conviction of the aforementioned for violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations by performing a number of illegal actions and practices while trading in the shares of the following companies; (Bank Aljazira, Basic Chemical Industries Co., Astra Industrial Group, Bawan Co., Electrical Industries Co., Abdullah A. M. Al-Khodari Sons Co., Abdulmohsen Alhokair Group for Tourism and Development, National Gypsum Co., Wafrah for Industry and Development Co., Alujain Corp., Filing and Packing Materials Manufacturing Co., Arabian Pipes Co., National Metal Manufacturing and Casting Co., Saudi Industrial Investment Group, Sahara Petrochemical Co., Saudi Paper Manufacturing Co., Arabian Cement Co., Saudi Public Transport Co., Saudi Automotive Services Co., Aseer Trading, Tourism and Manufacturing Co., Saudi Industrial Export Co., Alkhaleej Training and Education Co., National Agricultural Development Co., Saudi Fisheries Co., Al-Jouf Agricultural Development Co., Walaa Cooperative Insurance Co., Gulf Union Cooperative Insurance Co., Al-Ahlia Insurance Co., Allied Cooperative Insurance Group, United Cooperative Assurance Co., Saudi Re for Cooperative Reinsurance Co., Gulf General Cooperative Insurance Co., Buruj Cooperative Insurance Co., Solidarity Saudi Takaful Co., Wataniya Insurance Co. And Amana Cooperative Insurance Co), during the period from 03/11/2014 until 29/01/2015. Such practices constituted manipulation and fraud, and created a misleading and incorrect impression about the securities of the aforementioned companies. The Appeal Committee's Decision included the imposition of a number of fines on him, detailed as follows:

1.    Imposing a fine on him amounting (530,000) Five Hundred Thirty Thousand Saudi Riyals for violating.
2.    Obliging him to pay (324,457.74) Three Hundred Twenty Four Thousand, Four Hundred Fifty Seven Saudi Riyals and Seventy Four Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
3.    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 one year.

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. Persons affected by these acts may file a compensation claim to the Committee as per Article 57 of the Capital Market Law, provided that such claim is proceeded by a complaint filed to the Authority.  
(To view the dates of trading and securities in question, click here)