SAUDI ARABIA: CMA Board Resolution Issued Regarding the Suspicion of a Violation to Public Prosecution

Thursday March 10 2022

On 8^th March 2022, the Capital Market Authority (CMA) announced that a CMA Board resolution has been issued regarding the referral of a suspicion of a violation to the Public Prosecution.

The suspicion is regarding the violation of Article and (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations, by an investor for carrying out practices that involved manipulative and deceptive acts, where the suspicion case was regarding a number of violating behaviors including the entry of purchase orders that aims to influence the share price (some of them are related to sell orders), and the entry of purchase orders in the closing auction with the aim of achieving a high closing price, during trading on shares of a number of listed companies on the Saudi Stock Exchange.

The CMA assures its devotion to apply the Capital Market Law and its Implementing Regulations and protect the market from illegal practices. It is worth noting that the General Secretariat of Committees for Resolution of Securities Disputes will announce to the public the identities of convicted violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes. Moreover, any person affected by these violations is entitled to file a compensation claim, after conviction, against the violators before to the Committee for the Resolution of Securities Disputes as per Article 57 of the Capital Market Law, provided that such claim is preceded by a complaint filed to the CMA (via this link).

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