In line with the Capital Market Authority's (CMA) responsibilities to protect the citizens and investors from unfair or unsound practices, and aiming to achieve fairness, efficiency and transparency in securities transactions, the CMA informs 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 (31) of the Capital Market Law and Article (5) of the Securities Business Regulations, and the referral of the suspicion of (17) suspects regarding the violation of Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations by one of the suspects for managing two portfolios that belong to two investors in the Saudi Stock Exchange without obtaining a license from the CMA, and using those portfolios in association with other suspects by carrying out practices that involve manipulative and deceptive acts in market trades, where the suspicion case was regarding the entry of purchase orders that aims to influence the share price on the shares of a number of listed companies on the Saudi Stock Exchange.

The CMA is committed to apply the Capital Market Law and its Implementing Regulations, and to protect the market from illegal practices. The CMA calls on all participants and investors in the Saudi Stock Exchange to limit their dealings in securities to the capital market institutions that have been authorised by the CMA to carry out securities business. It further requests them not to deal with unauthorised persons, be they natural or legal persons, and must ensure that the persons with whom they deal have obtained the Capital Market Authority's authorisation, or visit the CMA's website on WWW.CMA.ORG.SA to view the list of the authorised capital market institutions.

It is worth noting that the General Secretariat of Committees for Resolution of Securities Disputes will announce to the public the identities of convicted violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes. 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. Furthermore, any person who has entered into any agreement or contract with an unauthorised person is entitled to file a claim, individually or collectively, to the Committee for the Resolution of Securities Disputes to rescind the agreement or contract and recover any money or other property paid or transferred pursuant to such agreement or contract,  in accordance with paragraph (b) of Article (60) of the Capital Market Law, provided that these claims are preceded by a complaint filed to the CMA (via this link).

(To view the dates of trading and the securities in relation to the violation, click here)