Announcement from the General Secretariat of CRSD Regarding the Issuance of the ACRSD Decision No. (1880/L.S/ 2020) of 1441 H. Convicting Violator of the Capital Market Law and its Implementing Regulations

​​​​​The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes’ (ACRSD) decision No. (1880/L.S/2020) of 1441 H., dated 29/06/1441 H., corresponding to 23/02/2020G., in the case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: Naif bin Marzooq bin Fandi Alrasheedi.

The decision concluded with the conviction of the abovementioned individual for violating Article (49) of the Capital Market Law, as well as Article (2) and Article (8) of the Market Conduct Regulations, when trading in shares of the following companies:

Bank Albilad, Middle East Paper Co., Basic Chemical Industries Co., Astra Industrial Group, Bawan Co., Al Yamamah Steel Industries Co., Methanol Chemicals Co., Saudi Arabia Refineries Co., Wafrah for Industry and Development Co., Saudi Advanced Industries Co., Alujain Holding Corp., Saudi Industrial Services Co., Arabian Pipes Co., Sahara International Petrochemical Co., Al-Babtain Power and Telecommunication Co., Rabigh Refining and Petrochemical Co., Najran Cement Co., Saudi Marketing Co., Al Hammadi Company for Development and Investment, Saudi Real Estate Co., Saudi Public Transport Co., Aseer Trading, Tourism and Manufacturing Co., Fitaihi Holding Group, Red Sea International Co., National Agricultural Development Co., Tabuk Agricultural Development Co., Jazan Energy and Development Co., Saudi Arabian Cooperative Insurance Co. and Al-Rajhi Company for Cooperative Insurance. The trading transactions were done during the period from 22/12/2015G. until 26/2/2017G. Such practices constituted manipulation and fraud, and created a false and misleading impression on the securities of the abovementioned companies, by purchasing the shares of such companies and then promoting for such shares via his Twitter account with the handle name (@naef3739) for the intention of inducing others to purchase in these companies' shares, then selling them to benefit from the result of this act.

The ACRSD decision included the imposition of a number of sanctions upon him, according to the following:

1)     Imposing a fine upon him amounting to (SR. 510,000) five hundred and ten thousand Saudi Riyals.

2)     Obliging him to pay to CMA account the amount of (SR. 33,125.15) thirty-three thousand one hundred twenty-five Saudi Riyals and fifteen Halalas, for the illegal gains achieved in his portfolio.

3)     Banning him from trading by purchasing shares of companies listed on the Exchange for his own account or as agent for others for a period of (1) year, excluding trading through investment funds with Authorised Persons.

The decision also included obliging a number of investors to pay to CMA account the amount of (SR. 952,238.55) nine hundred fifty- two thousand two hundred thirty-eight Saudi Riyals and fifty-five Halalas, for the illegal gains achieved in their portfolios that resulted from the illegal trading committed by the convict; Naif bin Marzooq bin Fandi Alrasheedi.


Furthermore, any person affected by these acts is entitled to file a compensation claim with the CRSD as per Article (57) of the Capital Market Law, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (click here)

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