As part of the Capital Market Authority's (CMA) continuous efforts to develop the capital market in the Kingdom, protect investors therein, strengthen the mechanisms of compensating the investors, and facilitating litigation procedures in the Exchange to guarantee that affected persons receive their compensations in the easiest and prompt way possible , and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its Resolution on amending the Resolution of Securities Disputes Proceedings Regulation (Regulation), by adding a chapter regulating the Class Action Suit, which the CMA has posted on its website.
The regulation of class action suit within the Resolution of Securities Disputes Proceedings Regulation, aims to facilitate litigations proceedings where the plaintiff is a group of persons who share the same legal issues, merits and subject matter of requests, which is appropriate to the nature of the listed companies and the size of their shareholders. The amendment also aims to develop litigation mechanisms and procedures in line with the best international practices, all of which are to enhance the attractiveness of the Saudi capital market and reduce the risk of investing in it, in addition to its role in reducing the time required to resolve investor compensation issues, which in turn, facilitate the work of the committees on one hand and focuses the efforts of investors on the other.
The Amended Regulations can be viewed on the Authority's website, via the following link:
Receiving requests for joining a Class Action Suit
The Capital Market Authority receives the Class Action Suit that fall within the scope of the provisions of the Capital Market Law and its Implementing Regulations, study them, conduct necessary investigation to confirm the validity of the Class Action Suit, and files it at the Resolution of Securities Disputes (CRSD).
How to file an official Class Action Suit to the Capital Market Authority
Through the official website.
CMA Head Office - King Fahad Road, Ground Floor Investor Protection office.
Documents to be attached to the Class Action Suit
For individuals: a copy of the National ID for Saudis and GCC citizens, Muqeem ID for non-Saudis or a copy of the passport for those residing abroad. As for companies and corporations: a copy of the commercial registration, and the compliant should be signed by the authorized person (the complaint won't be considered nor its procedures completed if it was not attached).
A copy of the power of attorney and the National ID for the legal representative.
A copy of the supporting documents.
