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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 15/04/1437H corresponding to 25/01/2016 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: (Saudi Ceramic Co., Saudi Chemical Co., Zamil Industrial Investment Co., Jarir Marketing Co.,  Fawaz Abdulaziz Alhokair Co., National Agricultural Development Co., Saudi IAIC Cooperative Insurance Co., United Cooperative Assurance Co., Bupa Arabia for Cooperative Insurance Co.,  Sanad Cooperative Insurance Co. ) during the period from 13/03/2011 until 03/05/2011. 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 (190,000) One 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 five years.
  3. He shall refrain from trading the shares (buying) of companies listed in the Saudi Stock Exchange for five years.
  4. He shall refrain from working in companies listed in the Saudi Stock Exchange for five year.

The decision also included obliging a number of investors to pay (899,670.70) Eight Hundred and Ninety Nine Thousand and Six Hundred and Seventy Riyals and Seventy 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.