ع

Published on the same date

An announcement by the Capital Market Authority regarding the issuance of the final decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) to convict the violators of the Capital Market Law and its implementing regulations

CMA announces a final decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) on 23-1-1432H/29-12-2010 regarding the case raised by CMA against Jar Allah bin Mohammad bin Nasser Al Jar Allah, Saeed bin Mohammad bin Nasser Al Jar Allah, Fayez bin Saleh bin Abdullah Bin Mahfouz and the investor Mohammad bin Nasser Al Jar Allah during their trading of National Metal Manufacturing and Casting Co. share during the period from 17-6-2006 until 15-7-2006. The final decision affirmed (CRSD)'s decision to convict the accused with the violations they were charged with and imposition penalties and sanctions according to the following:

First: Jar Allah bin Mohammad bin Nasser Al Jar Allah’s violation to Article 49 of the Capital Market Law was proven as well as his violation of Articles 2 and 3 of the Market Conduct Regulations . The imposition of the following penalties and sanctions is in order:

1- Oblige him to pay all the revenue, as a result of these violations, to the CMA account. The total amount is (56,633,207) Fifty Six Million, Six Hundred and Thirty Three Thousand, Two Hundred and Seven Riyals.

2- Imposition of a penalty of (100,000) One Hundred Thousand Riyals as a result of his violations.

3- Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for five years.

4- Prevent him from working in the companies that have shares traded in the stock market for five years.

5- Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for five years.

Second: Saeed bin Mohammad bin Nasser Al Jar Allah’s violation to Article 49 of the Capital Market Law was proven as well as his violation of Articles 2 and 3 of the Market Conduct Regulations . The imposition of the following penalties and sanctions is in order:

1- Imposition of a penalty of (100,000) One Hundred Thousand Riyals as a result of his violations.

2- Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for five years.

3- Prevent him from working in the companies that have shares traded in the stock market for five years.

4- Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for five years.

Third: The collaboration of Fayez bin Saleh bin Abdullah Bin Mahfouz in violating Article 49 of the Capital Market Law and clause (a) of Article 11 of the Market Conduct Regulations. The imposition of the following penalties and sanctions is in order:

1- Imposition of a penalty of (200,000) Two Hundred Thousand Riyals as a result of his two violations.

2- Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for five years.

3- Prevent him from working in the companies that have shares traded in the stock market for five years.

4- Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for five years.

Fourth: Jar Allah bin Mohammad Al Jar Allah and Saeed bin Mohammad Al Jar Allah were all proven to have exercised the violating acts in the jurisdiction in which the lawsuit is brought on their client’s portfolio who is the investor Mohammad bin Nasser bin Jar Allah Al Jar Allah. The investor was obliged to pay the revenues gained as a result of the violating acts done by his representatives to CMA’s account. The total amount was(103,889,681.26) One Hundred and Three Million, Eight Hundred and Eighty Nine Thousand, Six Hundred and Eighty One Riyals and Twenty six Halalas.

By that, CMA insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.