The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Committee for Resolution of Securities Disputes' (CRSD) final decision No. (3970/L/D1/2022) of 1444 H., dated 22/01/1444 H., corresponding to 20/08/2022, in the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Elqmma Marketing Company; a company located outside the Kingdom of Saudi Arabia, with Commercial Register No. (125884).
The decision concluded with the conviction of the abovementioned Company for violating Article (31) of the Capital Market Law, as well as Article (5) and Article (7) of the Securities Business Regulations, by carrying out securities business without obtaining a license from the CMA, represented in the activity of “Advising" by providing recommendations regarding purchase and sale of shares of companies listed in the Saudi Exchange using a social media group in WhatsApp in return for various subscription fees, in addition to advertising for the provision of the activities of “Advising" and “Managing" via the website (http://elqma.com) without obtaining a license from the CMA.
The decision included the imposition of a number of sanctions, according to the following:
- Imposing a fine upon the Company amounting to (SR. 100,000) one hundred thousand Saudi Riyals for violating Article (31) of the Capital Market Law, and for the violation of Article (5) of the Securities Business Regulations.
- Imposing a fine upon the Company amounting to (SR. 100,000) one hundred thousand Saudi Riyals for violating Article (17) of the Securities Business Regulations.
- Obliging the Company to cease practicing securities business without a license, as well as ceasing to advertise such activity via websites on the internet targeting investors inside the Kingdom, in addition to ceasing to the use of bank accounts belonging to individuals inside the Kingdom for such purposes.
Furthermore, any person who has entered into an agreement or contract with the convicted company in relation to these violations is entitled to file a claim (as individual or class action) with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred 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 (File Complaint Link).
However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors who had entered into an agreement or contract with the convicted company to apply to the CRSD to join the class action.
