The General Administration for Communication and Investor Protection at the Saudi Capital Market Authority said that the Securities Disputes Appeals Committee convicted 5 investors and a local company for violating the financial market system and its executive regulations, imposing fines on them amounting to 4.02 million riyals, and obligating them to pay 811.5 thousand riyals for the illegal gains achieved. on their investment portfolios in three different peremptory penal decisions.
According to a statement issued by the Capital Market Authority, a copy of which was obtained by Al-Khaleej, the Appeals Committee issued its first final decision convicting M. A., in violation of Paragraph (B) of Article 50 of the Financial Market Law, because during the period from the date of 05/30/2021 until the date of 06/01/2021, he traded purchases in the shares of “Astra Industrial Group” based on inside information, before… Astra Industrial Group announced on 06/13/2021 (before the start of the trading period), via the website of the financial market (Tadawul), that one of its subsidiaries (Tabuk Pharmaceutical Industries Company) had signed an exclusive services agreement with the Swiss company Moderna GmbH and distributed Its vaccine (Covid 19) and any vaccine against mutant strains of (Covid 19) within the Kingdom, where it imposed a fine of 300 thousand riyals on it, and required it to pay 163 thousand riyals for the illegal gains made on its investment portfolio.
Second decision
While the committee condemned in its second final decision A. Kh. g. In violation of Paragraph (A) of Article Forty-Nine of the Financial Market Law, and Paragraph (A) of Article Two of the Market Conduct Regulations, because he entered purchase orders with the aim of influencing the stock price, and entered purchase orders with the aim of achieving a high closing auction price and their connection with sale orders, This happened when he traded the shares of the following companies: Takween, MEPCO, BCI, Astra Industrial, Shaker, Bawan, Electrical Industries, Al-Yamamah Steel, Gypsco, Sadq, Iyan, Amiantit, Metal, Zamil Industrial, Tanmia, Al-Babtain, Al-Abdullatif, Hail Cement, Real Estate, Sanad (currently Asir), and the Red Sea Company, during the period from 06/24/2018 until 10/11/2021, as these actions and practices constituted manipulation and fraud, and created a misleading and incorrect impression regarding the securities of the aforementioned companies. A fine of 2.8 million riyals was imposed on him, and he was required to pay 647 thousand riyals for the illegal gains made on his investment portfolio.
Third resolution
In the third final decision, the Appeals Committee condemned E. R. For development and commercial investment, and all of A. A., and S. M., and M. B. R. In violation of Article (31) of the Financial Market Law, and Article Five of the Securities Business Regulations, due to the company’s practice of securities business, which consisted of activities (arranging, managing, and providing advice), and the participation of the three convicts in practicing the aforementioned activities, and that By concluding a contract entitled (Contract for Providing Financial and Administrative Consulting Services) with a female investor during the period from 10/21/2019 to 10/21/2020, without obtaining a license from the Capital Market Authority, and a fine of 900 thousand riyals was imposed on them.
Investor confidence
The Authority explained that the decisions of the Appeals Committee in final securities disputes came as a result of joint coordination and cooperation between the Authority and the relevant concerned authorities, and in light of the general criminal lawsuits filed by the Public Prosecution and referred to it by the Capital Market Authority against the company and the five investors for violating the Financial Market Law and its executive regulations.
The Authority stressed the importance of investors’ confidence in the financial market for its growth and development, as the Authority continuously works to monitor any violating behavior, arrest its perpetrators, and complete the necessary procedures to impose deterrent penalties against them, in order to enhance the Authority’s efforts to create an investment environment that is attractive to all categories of investors and safe from practices. That is unfair, improper, or involves fraud, deceit, deception, misrepresentation or manipulation.