ACRSD imposes SAR 3.8M fine on Capital Market Law violator

Logo of Capital Market Authority (CMA)

The Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted an investor of violating the Capital Market Law and its implementing regulations. A fine of SAR 1.75 million was imposed on him and he was obligated to pay SAR 2.03 million for the illegal gains made on his investment portfolio, according to a statement on the Capital Market Authority's (CMA) website.

The violator entered some buy and sell orders aimed at influencing the stock price of 17 listed companies, namely Takween Advanced Industries Co., Saudi Steel Pipe Co., National Gypsum Co., Saudi Advanced Industries Co., National Metal Manufacturing and Casting Co. (Maadaniyah), Najran Cement Co., Al Kathiri Holding Co., Middle East Healthcare Co. (Saudi German Health), Saudi Automotive Services Co. (SASCO), Emaar The Economic City, Red Sea International Co., National Company for Learning and Education, Dar Al Arkan Real Estate Development Co., Al Gassim Investment Holding Co. (GACO), AlJazira Takaful Taawuni Co., Fesh Fash Snack Food Production Co. and Arabian Food and Dairy Factories Co. (FADECO).

The violations, constituting manipulation and fraud while creating a misleading and incorrect impression for the mentioned companies, were carried out from Aug. 13, 2020, to June 15, 2022, the statement noted.

Under the ACRSD's final decision, Abdulaziz Almuntashiry was found guilty of violating Paragraph (A) of Article (49) of the Capital Market Law and Paragraph (A) of Article (2) of the Market Conduct Regulations.

CMA explained that the ACRSD's final decision came as a result of joint coordination and cooperation between the market regulator and relevant concerned authorities. It also came in light of the public penal lawsuit filed by the Public Prosecution, referred to it by CMA, against the abovementioned violator.

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as an individual or class action) with the ACRSD for the damage endured from these violations, provided that such a claim is preceded by a complaint filed with CMA in this regard.