CMA Announces the Referral of a Suspicion of Violating Article (49) of the Capital Market Law, Article (2) and (8) of the Market Conduct Regulations to the Public Prosecution
Sunday, May 02, 2021 at 3:59 PM
Sun May 2, 2021 15:59
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 the CMA Board's resolutions have been issued regarding the referral of a suspicion of two suspects to the Public Prosecution. The suspicion is regarding the violation of Article (49) of the Capital Market Law, Article (2) and (8) of the Market Conduct Regulations by two suspects, where they carried out practices that involved manipulation and fraud during trading on shares of a number of listed companies on the Saudi Stock Exchange "Tadawul". The suspicion cases were regarding one of the suspects entering purchase orders for a security without having the intention for execution, and entering sell orders for a security without having the intention for execution. as well as trading -by the two suspects- (by purchasing) in the shares of a number of listed companies, then promoting opinions via "Hawamer Saudi Stock Forum" through the handle name of (Rano Al Hamorah), for the purpose of influencing the price of the security, then trading (by selling) and take advantage of the share price that increased resulting from this promotion. Therefore, the cases have been filed to Committees for Resolution of Securities Disputes, by the Public Prosecution.
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.
(To view the dates of trading and the securities in relation to the violation, click here)