CMA announces the referral of a suspicion of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations to the Bureau of Investigation and Public Prosecution.
Thursday, April 15, 2021 at 4:05 PM
Thu Apr 15, 2021 16:05
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 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 two investors, where they carried out practices that involved manipulation and fraud in market trades. The suspicion case was regarding them entering purchase orders for the purpose of influencing the security price, and entering purchase orders at the closing auction to achieve a high closing price in the security of a number of listed companies on the Saudi Stock Exchange.
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 57 of the Capital Market Law, provided that such claim is preceded by a complaint filed to the CMA (via this link) in this regard.