ع

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 10/04/1437H corresponding to 20/01/2016 regarding the lawsuit filed by the Capital Market Authority against Ali bin Abdulkareem bin Abdullah Almahdi ( previous Head of Asset and Portfolio Management at Arbah Capital ). The decision upheld the previous decision issued by the Committee for the Resolution of Securities Disputes convicting the defendant for violating Article (49) of the Capital Market Law and Article (2) and Article (3)  of the Market Conduct Regulations, and paragraph (A) of Article (24) of the Authorised Persons Regulations for trading the shares of the following companies: (Astra Industrial Group,  Al Hassan Ghazi Ibrahim Shaker Co., Saudi Chemical Co., Arabian Cement Co., Abdullah Al Othaim Markets Co., Mouwasat Medical Services Co. and  Buruj Cooperative Insurance Co.) during the period from 28/11/2010 until 08/02/2011. These practices formed manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The following fines and sanctions shall be applied:

  1. Impose a fine on him in the amount of 390,000 Three Hundred and Ninety Thousand Riyals.
  2. He shall refrain from engaging in activities of brokerage and portfolio management, in addition to working as an investment consultant for three years.
  3. He shall refrain from trading the shares of companies listed in the Saudi Stock Exchange (buying) for three years.
  4. He shall refrain from working in companies listed in the Saudi Stock Exchange for three years.

The decision also included obliging a number of investors to pay 4,361,507.95 Four Million and Three Hundred and Sixty One Thousand and Five Hundred and Seven Riyals and Ninety Five Halalas to CMA's account for the illegal profits in their investment portfolios as a result of the violations made by the defendant Ali bin Abdulkareem bin Abdullah Almahdi

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.