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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 Fahad bin Saleh bin Mutlaq AlHinaky. 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 Arabia Refineries Co. , Saudi Industrial Development Co.(SIDC), Saudi Industrial Services Co.(SISCO), Nama Chemicals Co. , Emaar The Economic City, Knowledge Economic City, Mobile Telecommunications Company Saudi Arabia (Zain), Al Sagr Co-operative Insurance Co, Bupa Arabia for Cooperative Insurance, Al-Ahlia Insurance Company, Al-Jouf Agriculture Development Co. , Sanad Insurance and Reinsurance Cooperative Company, United Cooperative Assurance Co.) during the period from 19/02/2011 until 27/04/2011 and from 12/09/2011 until 30/11/2011. 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. 1,080,000) One Million and Eighty Thousand Saudi Riyals for these violations.
  2. Oblige him to pay (SR 257,680) Two Hundred and Fifty Seven Thousand, Six Hundred and Eighty Riyals 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.

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.