Announcing the Issuance of CRSD Final Decision 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 Committee for Resolution of Securities Disputes' (CRSD) final decision No. (4231/L/D1/2023) of 1444 H., dated 02/07/1444 H., corresponding to 24/01/2023, in the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Muhamad bin Na'ef bin Lafi Albadrani Alomari.

The decision concluded with the conviction of the abovementioned individual for violating Article (31) of the Capital Market Law, by claiming the practice of one securities business works represented in the activity of “Managing" without obtaining a license from the CMA. The convicted person concluded a number of contracts with one investor, provisions of which included that he has the experience in the field of securities and that he will manage a number of portfolios pursuant to such contracts in return for a percentage of achieved profits.

The decision included the imposition of a fine upon him amounting to (SR. 30,000) thirty thousand Saudi Riyals.

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 (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 person to apply to the CRSD to join the class action.​