The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision No. (3595/L.S/2024) of 1446 H., dated 28/06/1446 H., corresponding to 29/12/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: MAEANA Investment Co. and Faisal bin Saad bin Mubarak Al Qarnain Aldusari, as the chairman of the board of directors of MAEANA Investment Co.
The decision concluded with the conviction of the abovementioned person and entity of violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, for practicing securities business, represented in the activity of “Dealing" and “Arranging", and the conviction of MAEANA Investment Co. of violating Article (17) of the Securities Business Regulations for advertising such activities by concluding agreements with 2060 Agricultural Company and Motqen Delivery Package Transportation Establishment, that included MAEANA Investment Co. commitment to manage the subscription of the Company's and Establishment's shares after transforming their legal structure, finalize the capital increase procedures, undertake to bring in investors, meet with subscription applicants, collect funds from subscribers, and receive money in return for such works, without obtaining a license from the CMA.
The decision included the imposition of a number of sanctions upon them according to the following:
First: MAEANA Investment Co.:
- Imposing a fine upon it amounting to (SR. 750,000) seven hundred fifty thousand Saudi Riyals, for violating Article (31) of the Capital Market Law, and Article (5) of the Securities Business Regulations.
- Imposing a fine upon it amounting to (SR. 750,000) seven hundred fifty thousand Saudi Riyals, for violating Article (17) of the Securities Business Regulations.
Second: Faisal bin Saad bin Mubarak Al Qarnain Aldusari:
- Imprisoning him for a period of (90) days.
- Imposing a fine upon him amounting to (SR. 750,000) seven hundred fifty thousand Saudi Riyals, for violating Article (31) of the Capital Market Law and Article (5) of the Securities Business Regulations.
Furthermore, any person who has entered into an agreement or contract with the convicted person or entity 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 concluded an agreement or contract with the convicted person or entity to apply to the CRSD to join the class action.
