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An Announcement from the Capital Market Authority regarding the decision issued by The Appeal Committee for the Resolution of Securities Disputes to convict a violator of the Capital Market Law and its implementing regulations

​The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 27/06/1437H corresponding to 05/04/2016 regarding the lawsuit filed by the Capital Market Authority against Hamad bin Abdulrahman bin Hamad Alkarawi . The decision upheld the previous decision issued by the Committee for the Resolution of Securities Disputes convicting the defendant for violating Article (49) of the Capital Market Law and Article (2) and Article (3) of the Market Conduct Regulations for trading the shares of the following companies: (Mohammad Al Mojil Group, Saudi Arabia Refineries Co. , Food Products Co. , Saudi Industrial Development Co. , Filing and Packing Materials Manufacturing Co. , Arabian Pipes Co. , National Metal Manufacturing and Casting Co. , Hail Cement Co. , United Electronics Co. ,  Saudi Automotive Services Co. , Anaam International Holding Group , Al-Baha Investment and Development Co. , National Agricultural Marketing Co. , Fitaihi Holding Group , Tabuk Agricultural Development Co. , Saudi Fisheries Co. , Ash-Sharqiyah Development Co. ,  The Company for Cooperative Insurance ,  Salama Cooperative Insurance Co. , Saudi United Cooperative Insurance Co. , Arabian Shield Cooperative Insurance Co. , SABB Takaful Co. , Saudi Indian Company for Cooperative Insurance , Alahli Takaful Co. , Al Sagr Cooperative Insurance Co. ,  United Cooperative Assurance Co. , Bupa Arabia for Cooperative Insurance Co. , Al-Rajhi Company for Cooperative Insurance , ACE Arabia Cooperative Insurance Co. ,  AXA Cooperative Insurance Co. , Buruj Cooperative Insurance Co. , Wataniya Insurance Co. , Amana Cooperative Insurance Co. , Saudi Enaya Cooperative Insurance Co. , Allianz Saudi Fransi Cooperative Insurance Co. , Saudi Re for Cooperative Reinsurance Co. ,  Al Alamiya for Cooperative Insurance Co.) during the period from 06/07/2011 until 15/07/2012. 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. Impose a fine on him in the amount of 1,425,000 One Million and Four Hundred and Twenty Five Thousand Riyals.
  2. Oblige him to pay 7,669,111.02  Seven Million and Six Hundred and Sixty Nine Thousand and One Hundred and Eleven Riyals and Two Halalas to CMA’s account for the illegal profits in his investment portfolio.
  3. He shall refrain from trading the shares of companies listed in the Saudi Stock Exchange (buying) for one year and six months.
  4. He shall refrain from engaging in activities of portfolio management, in addition to working as an investment consultant for one year and six months.
  5. He shall refrain from working in companies listed in the Saudi Stock Exchange for one year and six months.

The decision also included obliging an investor to pay 6,130.55 Six Thousand and One Hundred and Thirty Riyals and Fifty Five Halalas to CMA's account for the illegal profits in her investment portfolios as a result of the violations made
by the defendant Hamad bin Abdulrahman bin Hamad Alkarawi.

The Capital Market Authority insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.