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) final decision No. (3249/L.S/2024) of 1445 H., dated 07/09/1445 H., corresponding to 17/03/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Abdullah bin Sa'id bin Muhammad Alkhazmary Alzahrani.
The decision concluded with the conviction of the abovementioned individual of violating Article (49/a) of the Capital Market Law and Article (2/a) of the Market Conduct Regulations, for entering purchase orders aiming to influence the share price, some of which linked with sale orders, also for entering purchase orders aiming to achieve a high price of closing bid, some of which linked with sale orders, while trading on the shares of the following companies:
Takween Advanced Industries Co., Middle East Paper Co., Basic Chemical Industries Co., Astra Industrial Group, Al Hassan Ghazi Ibrahim Shaker Co., Bawan Co., Electrical Industries Co., Al Yamamah Steel Industries Co., National Gypsum Co., Saudi Industrial Development Co., AYYAN Investment Co., Saudi Arabian Amiantit Co., National Metal Manufacturing and Casting Co., Zamil Industrial Investment Co., Tanmiah Food Co., Al-Babtain Power and Telecommunication Co., Al Abdullatif Industrial Investment Co., Hail Cement Co., Saudi Real Estate Co., Sinad Holding Co., and Red Sea International Co., during the period from 24/06/2018 until 11/10/2021. Such acts and practices represented manipulation and fraud, and created a false and misleading impressions regarding the securities of the abovementioned companies.
The decision included the imposition of a number of sanctions upon him according to the following:
- Imposing a fine upon him amounting to (SR. 2,820,000) two million eight hundred twenty thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 647,884.66) six hundred forty-seven thousand eight hundred eighty-four Saudi Riyals and sixty-six Halalas against the illegal gains achieved in his investment portfolios.
- Banning him from trading by purchasing shares in the Saudi exchange, either directly or indirectly, excluding trading through investment funds with Capital Market Institutions for One year.
Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint)
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 affected by such violations to apply to the CRSD to join the class action.
(To view the dates of trading and security in relation to the violation, click here)
