CMA announces the referral of a suspicion of violating Article (49) of the Capital Market Law and Article (8) of the Market Conduct Regulations to the Public Prosecution

Tuesday, July 25, 2017 at 3:21 PM

Tue Jul 25, 2017 15:21

Proceeding from the Capital Market Authority’s (CMA) responsibilities to protect  the market from unfair and unsound practices involving cheating, fraud and manipulation; to ensure fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA would like to inform the investors and participants in the capital market that a CMA Board resolution was issued referring a suspicion of a violation of Article (49) of the Capital Market Law and Article (8) of the Market Conduct Regulations to the Public Prosecution. One investor was suspected of promoting shares of listed companies by using his account on the social network “Twitter” to create incorrect and misleading impressions about the prices of those companies' shares in order to incite others to buy these shares, then he sells his shares in these companies when the prices go up as a result of the tweets posted in his Twitter account; such conduct allowed him to realise gains.   

The Capital Market Authority 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 suit for compensation to the Committee as per Article (57) of the Capital Market Law. This must be preceded by a complaint filed to the CMA.

To view the securities and the dates on which the suspected trading occurred, click here