CMA announces a referral of a suspicion of violating Article (49) of the Capital Market Law (CML), Articles (2), (8) of the Market Conduct Regulations, Article (31) of the CML, Articles (5), (17) of the Securities Business Regulations to the BIPP
Tuesday, November 22, 2016 at 3:27 PM
Tue Nov 22, 2016 15:27
As part of the Capital Market Authority’s responsibilities to protect the market from unfair and unsound practices involving cheating, fraud and manipulation. In addition, to ensure fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the Capital Market Authority ("CMA") would like to inform investors and participants in the capital market that a CMA Board resolution was issued to refer a suspicion of violations to the Bureau of Investigation and Public Prosecution ("BIPP"). Two investors were suspected of violating Article (49) of the Capital Market Law, Article (2) and Article (8) of the Market Conduct Regulations for involving in circulating, directly, a statement of opinion through Twitter (social media network) for the purpose of influencing the price of securities of a number of companies listed on the Saudi Stock Exchange, and one of the investors was also suspected of violating Article (31) of the Capital Market Law, Article (5) and Article (17) of the Securities Business Regulations for carrying on securities business (Advising) and advertising it without a license from CMA.
The CMA insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts. Whoever is affected by these acts can file a compensation claim to the committee as per Article 57 of the Law. This must be proceeded by a complaint filed to the Authority.
(To view the securities and the dates on which the suspected trading occurred, click here)