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Published on the same date

An announcement by the Capital Market Authority regarding the decision issued by The Committee for the Resolution of Securities Disputes (CRSD) to convict violators of the Capital Market Law and its implementing regulations

​​In Regard to CMA’s announcement that published on its website dated 25/07/1436H corresponding to 13/05/2015 regarding to issuance of the CMA Board Resolution to referral of a number of suspects in violating  article fifty of the Capital Market Law ("CML"), and Articles five and six of the Market Conduct Regulations relating to insider trading on Etihad Etisalat Co. (Mobily) shares during the period from 24/04/2014 until 27/04/2014, and from 22/07/2014 until 11/09/2014 to the Bureau of Investigation and Public Prosecution as it falls under their jurisdiction.

CMA wishes to clarify to the public that on 05/04/1438H corresponding to 03/01/2017, A decision was issued by the Committee for the Resolution of Securities Disputes (The Resolution) to convict a number of suspects for violating article fifty clause (A) of the CML, and Articles five and six clause (A) of the Market Conduct Regulations. As those suspects disclose insider information relating to Mobily shares  and other suspects trade on these shares based on these insider information. The following fines and sanctions are applied:

  1. Oblige one of the convicts to pay the avoided losses on his investment portfolio to the Authority’s account for the illegal gains in amount of (30,493,325.75) Thirty million, four Hundred and Ninety-Three Thousand, Three Hundred and Twenty-Five Riyals and Seventy-Five Halalas.
  2. Oblige one of the convicts company to pay the avoided losses on its investment portfolio to the Authority’s account for the illegal gains in amount of (284,455,552.50) Two Hundred Eighty-Four million, four Hundred and Fifty-Five Thousand, Five Hundred and Fifty-two Riyals and Fifty Halalas.
  3. Imposition of fines on each of those convicted between (100,000) One Hundred Thousand and (200,000) Two Hundred Thousand.
  4. Imprisonment on those convicted for a period between one year and two years.
  5. Convicts shall refrain from portfolios management, working as an investment consultants, working in listed companies for three years.
  6. The temporary (CRSD) decision to reserve the amounts set forth in paragraph (1) and (2) above is effective, until this decision is final and the amounts are collected.

CMA would like to clarify that this resolution is not final and the parties can appeal before The Appeal Committee for the Resolution of Securities Disputes (ACRSD) in 30 days after receiving it. Therefore, no mention of the names of violators, CMA will announce any material developments regarding this lawsuit once it occurs.
 
The Capital Market Authority insures its devotion to maintain fairness, efficiency, and transparency in transactions of securities as well as protect the market from illegal acts according to its responsibility that stated by the Capital Market Law.