CMA refers some suspects to Public Prosecution on market violations

Logo of Capital Market Authority (CMA)

The Capital Market Authority’s (CMA) board issued a resolution on referring two suspected investors to the Public Prosecution.

The suspicion is regarding the violation of Article No. 31 of the Capital Market Law, Articles No. 5 and 17 of the Securities Business Regulations by an individual who practiced a securities activity—specifically providing investment advice—through a Telegram channel named “Abu Abdallah” without obtaining the required license from the authority.

The second individual was referred on suspicion of participating in the violation by receiving subscription payments generated from this activity through his bank accounts, and earning a commission for collecting and transferring those funds to the first suspect.

A final decision will be issued by the Committees for Resolution of Securities Disputes.

Moreover, any person affected by these violations has the right to file a compensation claim, after conviction, against the violator with the Committee for the Resolution of Securities Disputes as per the Capital Market Law.

Moreover, any person who entered into an agreement or contract with an unlicensed person has the right—under paragraph (b) of Article 60 of the law—to file, individually or collectively, a claim with the Committee for the Resolution of Securities Disputes to request termination of the agreement or contract and recover any funds or other assets paid or transferred under it. This requires first submitting a complaint to the CMA.