In line with the Capital Market Authority's (CMA) responsibilities to protect the market from unfair and unsound practices, and aiming to achieve fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA would like to inform the investors and participants in the capital market that a CMA Board resolution has been issued regarding the referral of a suspicion of a violation to the Public Prosecution. The suspicion is regarding the violation of Article (49) of the Capital Market Law and Articles (2) and (8) of the Market Conduct Regulations by (5) investors, where they carried out practices that involved manipulation and fraud in market trades, by entering purchase or sale orders for the purpose of influencing the price of the security, and trading (by purchasing) in the shares of a number of listed companies, then promoting opinions via the social media platform "twitter" using the handle-name (@abukhalidahmid), and "Hawamer Saudi Stock Forum" through the handle-name of (بايسون الأسهم), for the purpose of influencing the price of the security, then trading (by selling) the shares of the listed companies affected by the promoted opinions. The suspicion cases consisted of them affecting the shares prices of (37) listed companies on the Saudi Stock Exchange during the period between 20/01/2020G. until 01/10/2020G.
In this regard, the CMA stresses that it will not hesitate, in pursuit of prosecuting manipulators in the capital market, to supervise their dealings, based on its powers under the Capital Market Law, and the advanced technology means it possesses that enable it to supervise all dealings and monitor suspicious cases and take the necessary legal procedures in accordance with the laws and regulations, in order to achieve the CMA's objectives toward enhancing the market efficiency and protecting the participant in it from illegal practices, beside ensuring they are not subject to cheating or manipulation.
It is worth noting that the General Secretariat of Committees for Resolution of Securities Disputes announces to the public the identities of violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes regarding criminal cases. Moreover, any person affected by these violations is entitled to file a compensation claim, after conviction, against the violators before to the Committee for the Resolution of Securities Disputes as per Article 57 of the Capital Market Law, provided that such claim is preceded by a complaint filed to the CMA (via this link) in this regard.
- (To view the dates of trading and the securities in relation to the violation, click here)
- (To view the dates of trading and the securities in relation to the violation, click here)
- (To view the dates of trading and the securities in relation to the violation, click here)
