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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 H1437/11/12 corresponding to 2016/08/15 regarding the lawsuit filed by the Capital Market Authority against Yazeed bin Sulaiman bin Saleh Alkhelewy. 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 Articles (2) and (3) of the Market Conduct Regulations for trading the shares of the following companies: (National Gypsum Co., Saudia Dairy and Foodstuff Co., Yanbu National Petrochemical Co., Al-Babtain Power and Telecommunication Co., Abdullah Al Othaim Markets Co., United Electronics Co., Anaam International Holding Group, Saudi Printing and Packaging Co., Salama Cooperative Insurance Co., Arabian Shield Cooperative Insurance Co., Saudi Arabian Cooperative Insurance Co., Saudi Indian Company for Cooperative Insurance, Al-Ahlia Insurance Co., Allied Cooperative Insurance Group, ACE Arabia Cooperative Insurance Co., Buruj Cooperative Insurance Co., Amana Cooperative Insurance Co.) during the period between 2012/06/30 until 2012/11/28. 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 260,000 Two Hundred and Sixty Thousand Riyals.
  2. Oblige him to pay 92,544.80 Ninety Two Thousand and Five Hundred and Forty Four Riyals and Eighty Halalas to the CMA's account for the illegal gains in his investment portfolio.
  3. He shall refrain from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf on someone else for three years.

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 and whoever is affected by these acts can file a suit for compensation to the committee as per Article 57 of the Law. This must be preceded by a complaint filed to the Authority.