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Published on the same date

An Announcement from the Capital Market Authority regarding the decisions issued by The Appeal Committee for the Resolution of Securities Disputes Convicting 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 decisions dated 8/12/1438H corresponding to 30/8/2017G and 21/12/1438H corresponding to 12/09/2017G on the lawsuits filed by The Public Prosecution against Mofeed Abdoullah Abdullmohsen Alghafly (which was referred from the Capital Market Authority). The decisions convicted the defendant of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations when trading the shares of (Sanad Cooperative Insurance Co., Arabia Insurance Cooperative Co., Allianz Saudi Fransi Cooperative Insurance Co., Salama Cooperative Insurance Co., Gulf Union Cooperative Insurance Co., Allied Cooperative Insurance Group, Al-Rajhi Company for Cooperative Insurance) during the period from 14/1/2014G until 29/1/2015G and when trading the shares of (Arabia Insurance Cooperative Co., Trade Union Cooperative Insurance Co.) during the period from 1/2/2015G until 23/4/2015G. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned companies. The Appeal Committee decisions included imposing a number of penalties on the defendant, detailed as follows:

  1. Imposing a fine on him of (600,000) Six Hundred Thousand Riyals for these violations.
  2. Obliging him to pay (207,495.66) Two Hundred and Seven Thousand, Four Hundred and Ninety Five Riyals and Sixty Six Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio for these violations.
  3. Refraining him from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of others, for three months.

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.

(To view the security and the date on which the suspected trading occurred)