2023-05-18 19:07:30
Al-Marsad Newspaper: The General Secretariat of the Committees for Resolution of Securities Disputes announced the issuance of the decision of the Appeal Committee in Securities Disputes, peremptory No. 2860 / SP / 2023 AD for the year 1444 AH and the date 09/21 1444 AH corresponding to 04/12/2023 AD, in the public criminal case Filed by the Public Prosecution (and referred to it by the Capital Market Authority) against a citizen.
operative decision
The operative part of the decision ended up convicting the aforementioned of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations, for carrying out a securities business represented in the activity of (management), by managing investment portfolios for a number of investors without obtaining License from the Capital Market Authority. And convicting him of violating Article 49 of the Capital Market Law, and Article 2 of the Market Conduct Regulations, when trading the shares of the following companies: Basic Chemical Industries Company (BCI), Fitaihi Holding Group Company (Fitaihi Group), and Mediterranean and Gulf Insurance Company (MedGulf). Insurance), SABB Takaful Company (SABB Takaful), Al-Andalus Real Estate Company (Al-Andalus), Saudi Enaya Cooperative Insurance Company (Enaya), Electrical Industries Company (Electrical Industries), Saudi Clay Pipe Production Company (Vera), Zahrat Al-Waha Trading Company (Al-Waha ), and the Arab Cooperative Insurance Company (Arab Insurance), during the period from 02/10/2020 AD until 09/16/2020 AD.
manipulation and fraud
As these actions and practices constituted manipulation and fraud, and created a misleading and incorrect impression regarding the securities of the aforementioned companies, as his violation was represented in his entering through the investment portfolios that he manages for a number of investors to enter purchase orders with the aim of influencing the share price, and entering purchase orders with the aim of achieving a price High closing auction.
The decision of the Appeal Committee included imposing a number of penalties on him. According to the following detail:
1/ Imprisonment for three months.
2/ Imposing a fine on him in the amount of (4,850,000) four million eight hundred and fifty thousand riyals.
3/ Preventing him from trading in the Saudi financial market, directly or indirectly, with the exception of trading through investment funds with financial market institutions for a period of five years.
4/ Preventing him from practicing brokerage, managing portfolios, or working as an investment advisor in the Saudi financial market for a period of five years.
5/ Preventing him from working in entities subject to the supervision of the Capital Market Authority, for a period of five years.
The decision also included obligating a number of investors to pay a total amount of (1,538,235.09) one million five hundred and thirty-eight thousand two hundred and thirty-five riyals and nine halalas to the Authority’s account, in return for the illegal gains made on their investment portfolios, resulting from the violating trades committed by the convicted citizen.
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