The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 01/11/1438H corresponding to 24/07/2017G on the lawsuit filed by The Public Prosecution against Rashed bin Garam Allah bin Mueedh Alzahrani (which was referred from the Capital Market Authority). The decision convicted the defendant for violating Article (49) of the Capital Market Law and Article (2) and (3) of the Market Conduct Regulations when he traded the shares of the following companies (Abdullah A. M. Al-Khodari Sons Co., National Gypsum Co., Saudi Cable Co., Saudi Industrial Development Co., Saudi Kayan Petrochemical Co., Rabigh Refining and Petrochemical Co., National Medical Care Co., Malath Cooperative Insurance Co., Amana Cooperative Insurance Co.) during the period from 22/08/2013 until 05/01/2014. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned companies. The Appeal Committee's decision included imposing a number of penalties on the defendant, detailed as follows:
- Imposing a fine on him of (170,000) One Hundred and Seventy Thousand Riyals for these violations.
- Obliging him to pay (66,049.40) Sixty Six Thousand, Forty Nine Riyals and Forty Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio that realized as a consequences of his violations.
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.
(the security and the date on which the suspected trading occurred)
