Announcement from the General Secretariat of CRSD Regarding the Issuance of CRSD Decision No. (2784\L\D1\2020) of 1441 H. Convicting Violator of the Capital Market Law and its Implementing Regulations

The General Secretariat of the Committees for the Resolution of Securities Disputes (GS-CRSD) announces the issuance of the CRSD final decision No. )2784/L/D1/2020 (of 1441 H. dated 06/09/1441 H. corresponding to 29/04/2020G. in the case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against Abdulbaqi bin Muhamad bin Easa Alhodhairy.

The CRSD's decision concluded with the conviction of abovementioned individual for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, by carrying out securities business without license. The violations of the convicted individual are represented in practicing the act of “dealing” as an agent by working as an agent for BMO-Markets Company, registered outside the Kingdom of Saudi Arabia (in the UK) and performing the activity of securities dealing. The convicted individual received money from investors inside the Kingdom, then transferred such money to other bank accounts within the Kingdom registered under the name of an institution he owns called “Kahraman Alsharq Commercial Institution”. Afterward, he transferred such money to bank accounts in foreign countries (China, Hong Kong, Turkey), which these foreign bank accounts belong to BMO-Markets Company. The convicted individual performs these acts in return for a percentage of such money. 

The CRSD decision included imposing a fine on him amounting to (SR. 100,000) one hundred thousand Saudi Riyals for such violations.

Furthermore, any person who has entered into an agreement or contract with the convicted person in relation to this violation is entitled to file a claim with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred by him under the agreement or contract as per Article (60/b) 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).