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Published on the same date

An announcement by the Capital Market Authority regarding the issuance of the decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) to convict a violator of the Capital Market Law and its implementing regulations

​CMA announces a decision by the Appeal Committee for the Resolution of Securities Conflicts (ACRSC) dated 30/06/1436H corresponding to 19/04/2015 regarding the lawsuit filed by the Capital Market Authority (CMA) against Raid bin Abdulkarim bin Omar Halawani. The ruling of ACRSC upheld the decision of the Committee for the Resolution of Securities Disputes (CRSD) to convict him of violating Article (49) of the Capital Market Law and Articles (2) and (3) of the Market Conduct Regulations by trading the shares of the following companies: (Saudi Printing and Packaging Company, Saudi United Cooperative Insurance Company (Walaa), Saudi Arabian Cooperative Insurance Company (SAICO), Arabia Insurance Cooperative Company, Trade Union Cooperative Insurance Company, United Cooperative Assurance Co, ACE Arabia Cooperative Insurance Company) during the period from 08/02/2011 until 27/04/2011. These practices formed manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The following fines and sanctions shall be applied:

  1. Imposition of a penalty amounting to (SR. 500,000) Five Hundred  Thousand Saudi Riyals for these violations.
  2. Oblige him to pay (SR 157,366.85) One Hundred and Fifty Seven Thousand, Three Hundred and Sixty Six Riyals and Eighty Five  Halalas to CMA’s account for the illegal profits in his investment portfolio.
  3. He shall refrain from trading the shares of listed companies (buying) for one year.
  4. He shall refrain from engaging in activities of brokerage and portfolio management, in addition to working as an investment consultant for one year.
  5. He shall refrain from working in listed companies for one year.

The committees’s decision included obliging a number of investors to pay (SR. 326,363.75) Three Hundred and Twenty Six Thousand, Three Hundred and Sixty Three Riyals and Seventy Five Halalas to CMA’s account for the illegal profits in their investment protfolios as a result of the violations by the convicted Raid bin Abdulkarim bin Omar Halawani.

By that, CMA insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.