Final ruling issued against capital market law violators, SAR 2.7 mln fine imposed

Logo of General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD)

The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision, on July 28, on the public penal case filed by the Public Prosecution against Turki Bakalka and Ali Bakalka.

The case was referred to the Public Prosecution by the Capital Market Authority (CMA).

Turki Bakalka and  Ali Bakalka were convicted of violating Article 49 of the Capital Market Law,  as well as Articles 2 and 3 of the Market Conduct Regulations, when trading in the shares and real estate investment traded funds units of the following: AlJazira REIT, Jadwa REIT Al Haramain Fund, Gulf Union Alahlia Cooperative Insurance Co., Arabia Insurance Cooperative Co., MEFIC REIT Fund, Salama Cooperative Insurance Co., Arabian Shield Cooperative Insurance Co., and Al Sagr Cooperative Insurance Co., during the period between Dec. 18, 2018, and June 15, 2020.

Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the securities of the abovementioned companies and funds units, the GS-CRSD said in a statement.

Turki Bakalka and Ali Bakalka were fined SAR 60,000 and SAR 730,000, respectively. They were ordered to pay to the CMA account a total of SAR 51,068 and SAR 1.89 million, respectively against the illegal gains realized on his investment portfolio.

They were also banned from trading on Tadawul for their own accounts or as an agent of others for a period of six months, excluding trading through investment funds with capital market institutions.

To view the dates of trading and securities in relation to the violations, click here