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An Announcement from the Capital Market Authority regarding the decisions issued by The Appeal Committee for the Resolution of Securities Disputes Convicting violators 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 4/6/1439H corresponding to 20/2/2018G on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Abdulaziz bin Saleh bin Abdullah Alsaghyir, Hisham bin Abdulaziz bin Saleh Alsaghyir, Abdulaziz Alsaghyir Business Investment Co., Mohammed bin Abdulmohsen bin Mohammed Alashgar and Faisal bin Mohammed bin Abdulmohsen Alashgar. The verdict concluded with the conviction of the mentioned defendants for violating the Capital Market Law and its Implementing Regulations. In addition to the imposition of a number of penalties on the defendants, detailed as follows:

First defendant: (Abdulaziz bin Saleh bin Abdullah Alsaghyir)

  1. Convicting the defendant of violating Paragraph (a) of Article (50) of the Capital Market Law and Paragraph (a) of Article (5) of the Market Conduct Regulations for the disclosure of insider information related to the shares of Etihad Etisalat (Mobily).
  2. Imposing a fine on him amounting to (100,000) One Hundred Thousand Riyals.
  3. Prohibiting him from managing portfolios, working as an investment advisor and working in companies listed in the Saudi Exchange for three years.

Second defendant: (Hisham bin Abdulaziz bin Saleh Alsaghyir)

  1. Convicting the defendant of violating Paragraph (a) of Article (50) of the Capital Market Law and Paragraph (a) of Article (6) of the Market Conduct Regulations for trading the shares of Etihad Etisalat (Mobily) based on insider information disclosed by the convict Abdulaziz bin Saleh Alsaghyir mentioned above.
  2. Imposing a fine on him amounting to (100,000) One Hundred Thousand Saudi Riyals.
  3. Prohibiting him from managing portfolios, working as an investment advisor and working in companies listed in the Saudi Exchange for three years.

Third defendant: (Abdulaziz Alsaghyir Business Investment Co.) 

  1. Obliging it to pay (280,948,800) Two Hundred Eighty Million, Nine Hundred Forty Eight Thousand, Eight Hundred Saudi Riyals to the Capital Market Authority’s account for the avoided losses on its investment portfolio as a result of the violated trades committed by the convict Hisham bin Abdulaziz bin Saleh Alsaghyir.

Fourth defendant: (Mohammed bin Abdulmohsen bin Mohammed Alashgar)

  1. Convicting the defendant of violating Paragraph (a) of Article (50) of the Capital Market Law and Paragraph (a) of Articles (5) and (6) of the Market Conduct Regulations for the disclosure of insider information related to the shares of Etihad Etisalat (Mobily), and trading based on that information.
  2. Imposing a fine on him amounting to (200,000) Two Hundred Thousand Saudi Riyals.
  3. Obliging him to pay (30,493,325.75) Thirty Million, Four Hundred Ninety Three Thousand, Three Hundred Twenty Five Saudi Riyals and Seventy Five Halalas to the Capital Market Authority’s account for the avoided losses as a result of the violated trades on his investment portfolio.
  4. Prohibiting him from managing portfolios, working as an investment advisor and working in companies listed in the Saudi Exchange for three years.

Fifth: (Faisal bin Mohammed bin Abdulmohsen Alashgar)

  1. Convicting the defendant of violating Paragraph (a) of Article (50) of the Capital Market Law and Paragraph (a) of Article (6) of the Market Conduct Regulations for trading on the investment portfolio of the convict Mohammed bin Abdulmohsen Alashgar in the shares of Etihad Etisalat (Mobily) based on insider information disclosed by the convict Mohammed bin Abdulmohsen Alashgar.
  2. Imposing a fine on him amounting to (100,000) One Hundred Thousand Saudi Riyals.
  3. Prohibiting him from managing portfolios, working as an investment advisor and working in companies listed in the Saudi Exchange for three years.

The Capital Market Authority also announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision on the lawsuit filed by the Capital Market Authority against Abdulaziz bin Saleh bin Abdullah Alsaghyir. The verdict concluded the conviction of the defendant for violating Sub-paragraph (4) of Paragraph (a) of Article (45) of the Listing Rules, for not informing the CMA of the change in the percentage of his ownership or in which he has interest in,  in the shares of Etihad Etisalat (Mobily) on 23/7/2014G. The verdict of the committee included the imposition of a fine on the defendant in the amount of (100,000) One Hundred Thousand Saudi Riyals for this violation.

The Capital Market Authority affirms on its devotion to apply the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices.