Announcement for the referral of a suspicion of violating Articles (49) and (50) of the Capital Market Law and Articles (5), (6) and (7) of the Market Conduct Regulations to the Public Prosecution
Wednesday, April 14, 2021 at 3:55 PM
Wed Apr 14, 2021 15:55
In line with the Capital Market Authority’s (CMA) responsibilities to protect the citizens and investors from unfair or unsound practices, and aiming to achieve fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA informs the investors and participants in the capital market that a CMA Board resolution has been issued regarding the referral of a Several legally responsible persons at Abdullah A. M. Al-Khodari Sons Company (“the Company”), and their relatives, to the Public Prosecution, for several suspicions occurred during the period from 30/05/2017 to 13/01/2020. The suspicions are regarding the violation of Articles (49) and (50) of the Capital Market Law and Articles (5), (6) and (7) of the Market Conduct Regulations. Due to the disclosure of inside information, and trading on the Company’s shares based on the disclosed inside information. Besides making an untrue statement with respect to a material fact, for the purpose of influencing the security’s price or inducing third parties to buy the Company`s shares, alongside failing to disclose material developments regarding the withdrawal of a number of projects that have been awarded to the Company.
The CMA assures its devotion to apply the Capital Market Law and its Implementing Regulations and protect the market from illegal practices. It is worth noting that the General Secretariat of Committees for Resolution of Securities Disputes announces to the public the identities of violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes regarding criminal cases. Moreover, any person affected by these violations is entitled to file a compensation claim, after conviction, against the violators before the Committee for the Resolution of Securities Disputes as per Article 56 of the Capital Market Law, provided that such claim is preceded by a complaint filed to the CMA (via this link) in this regard.