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Published on the same date

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 02/02/1438H corresponding to 02/11/2016 regarding the lawsuit filed by the Capital Market Authority against Yazeed bin Suliman Alkhilaiwi. The decision convicted the defendant for 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: (Astra Industrial Group, Al Sorayai Trading and Industrial Group, Al Hassan Ghazi Ibrahim Shaker Co., Altayyar Travel Group, National Gas and Industrialization Co., National Gypsum Co., Al Abdullatif Industrial Investment Co., City Cement Co., Abdullah Al Othaim Markets Co., United Electronics Co., Makkah Construction and Development Co., National Agricultural Marketing Co., Tourism Enterprise Co., Jarir Marketing Co., Fawaz Abdulaziz Alhokair Co., United International Transportation Co., Saudi Printing and Packaging Co., Kingdom Holding Co., Herfy Food Services Co., Saudi Airlines Catering Co., Salama Cooperative Insurance Co., Arabian Shield Cooperative Insurance Co., Saudi Arabian Cooperative Insurance Co., Allied Cooperative Insurance Group, Arabia Insurance Cooperative Co., Al-Rajhi Company for Cooperative Insurance, AXA Cooperative Insurance Co. and Gulf General Cooperative Insurance Co.) during the period from 01/12/2012 until 07/07/2013. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The following fines and sanctions are applied:

  1. Obliging him to pay (763,770.10) Seven Hundred and sixty Three Thousand, Seven Hundred and Seventy Riyals and Ten Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio.
  2. Imposing a fine of (650,000) Six Hundred and Fifty Thousand Riyals.
  3. He shall refrain from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of someone else for Five 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 Capital Market Law, this must be preceded by a complaint filed to the CMA.