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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 16/07/1436H corresponding to 05/05/2015 regarding the lawsuit filed by the Capital Market Authority (CMA) against Hamad bin Abdulwahab bin Mohammad Al Abdulwahab . 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: (Malath Cooperative Insurance and Reinsurance Company, ALahli Takaful Company, SAAB Takaful, Tabuk Agriculture Development Co., Saudi Fisheries Co., Saudi Chemical Company, United International Transportation Company Ltd. (Budget Saudi), National Gypsum Company, Salama Cooperative Insurance Co, Advanced Petrochemical Company, Saudi Transport and Investment Company (Mubarrad), Mohammad Al Mojil Group Company, Saudi Arabia Refineries Co.,Wafrah for Industries and Development, Al-Baha Investment and Development co. ,Saudi Industrial Export Co, Red Sea Housing Services Company, Ash-Sharqiyah Development Company, Al-Jouf Agriculture Development Co. ) during the period from 03/02/2008 until 01/03/2009. 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. Oblige him to pay (SR 10,118,206) Ten Million and One Hundred and Eighteen Thousand, Two Hundred and Six Riyals to CMA’s account for the illegal profits in his investment portfolio.
  2. Imposition of a penalty amounting to (SR. 1,455,000) One Million and Four Hundred and Fifty Five Thousand Saudi Riyals for these violations on his portfolio nad one of the investors’ portfolio as well .
  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. e shall refrain from working in listed companies for one year.

The committee’s decision included obliging one of the investors to pay (SR. 5,896,052) Five Million and Eight Hundred and Ninety Seven Thousand and Fifty Two  Riyals to CMA’s account for the illegal profits in his investment portfolios as a result of the violations by the convicted Hamad bin Abdulwahab bin Mohammad Al Abdulwahab  .

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.