Announcement for the referral of a suspicion of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations to the Public Prosecution

Monday, November 30, 2020 at 3:57 PM

Mon Nov 30, 2020 15:57

In line with the Capital Market Authority’s (CMA) responsibilities to protect the market from unfair and unsound practices involving deceit, cheating, fraud and manipulation, and aiming to achieve fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA would like to inform the investors and participants in the capital market that a CMA Board resolution was issued regarding the referral of a suspicion of a violation to the Public Prosecution. The suspicion is regarding the violation of Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations by (22) Investors, as a result of their suspicious trading in the shares of Dar Al Arkan Real Estate Development Company, which entailed achieving profits on their investment portfolios amounting to (SAR 1,334,566,432) One Billion Three Hundred Thirty-Four Million Five Hundred Sixty-Six Thousand Four Hundred Thirty-Two Saudi Riyals. Moreover, the Public Prosecution has registered this case in the docket of the Committee for Resolution of Securities Disputes.
In this regard, the CMA bring to the attention of all participants in the market that the illegal practices in the market involving fraud, deceit, cheating and manipulation are considered criminal offenses that the perpetrator of which is subject to legal accountability and the imposition of the penalties stipulated in the Capital Market Law.
The CMA stresses that it will not hesitate, in pursuit of prosecuting manipulators in the capital market, to supervise their dealings, based on its powers under the Capital Market Law, and the advanced technology means it possesses that enable it to supervise all dealings and monitor suspicious cases and take the necessary legal procedures in accordance with the laws and regulations.
The Capital Market Authority states that it coordinates with the competent security authorities, each within its jurisdiction, to pursue whoever attempts to manipulate or cheat in the capital market, which is a part of the CMA’s objectives toward enhancing the market efficiency and protecting the participant in it, beside ensuring they are not subject cheating or manipulation.
The CMA assures its devotion to apply the Capital Market Law and its Implementing Regulations and protect the investors from illegal practices. Any person affected by these acts is entitled to file a compensation claim to the committee, provided that such claim is preceded by a complaint filed to the CMA in this regard.
(To view the dates of trading in relation to the violation)