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. (3899/L.S/2025) of 1447 H., dated 11/03/1447 H., corresponding to 03/09/2025, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Mohsen bin Muteb bin Mutlaq Alotaibi and Abdulrahman bin Abdullah bin Abdulrahman Alabdulkarim.
The decision concluded with the conviction of the abovementioned persons of violating Article (49.a) of the Capital Market Law as well as Article (7) of the Market Conduct Regulations, by jointly providing a false statement in the share registration document of Rawasi Albina Investment Company, to avoid complying with liquidity and listing requirements in the Parallel Market (Nomu); as they declared in the Company's share registration document that the public ownership percentage reached (40.14%) of its total shares, while the actual public ownership did not exceed (6.77%) of the total Company's shares. This led to the Company being listed in the Nomu Market while (93.23%) of its shares remained in the ownership of individuals excluded from the public. The Company's share registration document included fictional number of ownership of several shareholders for its shares in order to increase the public allocation percentage so that the Company would be qualified for listing. This act created a false and misleading impression in the Company's share registration document.
The decision included the imposition of a number of sanctions upon them according to the following:
First: Mohsen bin Muteb bin Mutlaq Alotaibi:
- Imposing a fine upon him amounting to (SR. 6,000,000) six million Saudi Riyals.
- Banning him from working in entities under the supervision of the CMA for Three years.
Second: Abdulrahman bin Abdullah bin Abdulrahman Alabdulkarim:
- Imposing a fine upon him amounting to (SR. 8,000,000) eight million Saudi Riyals.
- Banning him from working in entities under the supervision of the CMA for Three years.
Furthermore, any person affected by the 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 such 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.
