​Further to the CMA’s announcement on 10/1/1436H corresponding to  03/11/2014G regarding the commencement of procedures to verify whether there are any violations to the Capital Market Law and its implementing regulations by Etihad Etisalat Co. (Mobily); and further to its announcement on 7/5/1436H corresponding to 26/02/2015G regarding the assignment of a specialized team to assess the company’s financial statements and all other related documents in order to complete the required legal procedures.

And based on CMA’s responsibility to protect citizens and investors from unfair and unsound practices involving, fraud, deceit, cheating or manipulation, and as part of its efforts to achieve fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA would like to inform the investors and participants in the Capital Market that a Board resolution was issued and included: 1) referral of a number of suspects of violating Article (49) of the Capital Market Law to the Bureau of Investigation and Public Prosecution to investigate and prosecute as it falls under their jurisdiction, for the suspicion of conducting businesses during their term at the executive management,  when  such violations have occurred, that created a false or misleading impression as to the value of the company’s security. 2) A lawsuit was filed, before the Committee of the Resolution of Securities Disputes (CRSD), against a number of suspects for violating sub-paragraph (2) and sub- paragraph (3) of paragraph (B) of Article (10) of the Corporate Governance Regulations and paragraph (A) of Article (42) and Article (44) of the Listing Rules due to the suspects’ non-compliance with the core responsibilities of the Board of Directors, during the period of such violations, by not ensuring the integrity of the financial and accounting systems including those related to preparing the financial reports of 2013 and 2014, and not ensuring the implementation of appropriate control systems to manage risk, and not carrying out their duties in such a way as to serve the interest of the company. 3) Referral of the suspected violation of the Companies Law to the Ministry of Commerce and Industry. 4) Referral of the suspected violation of the Telecommunications Law to the Communications and Information Technology Commission. 5) Continue the investigation with other parties in related violations.

The CMA emphasizes that the listed companies’ board members and executives and all market participants should comply with the Capital Market Law and its Implementing Regulations.