Announcing the Issuance of ACRSD Final Decision Convicting Violators 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 Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (3175/L.S/2024) of 1445 H., dated 26/06/1445 H., corresponding to 08/01/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Shaden bint Abdulkarim bin Muhamad Alrajhi, Shahad bint Abdulkarim bin Muhamad Alrajhi, Mesha'el bint Abdulkarim bin Muhamad Alrajhi, Riyadh bin Sulaiman bin Omar Alkhorashi, Abdulkarim bin Muhamad bin Abdulaziz Alrajhi.

The decision concluded with the following:

1. The conviction of Riyadh bin Sulaiman bin Omar Alkhorashi for violating Article (49/a) of the Capital Market Law and Article (8/a) of the Market Conduct Regulations, when promoting opinion in two social media groups via WhatsApp; called (Subscription Group-Shares) aiming to affect the share price of Watani Iron Steel Co., and execute (4) special transactions with Shaden bint Abdulkarim bin Muhamad Alrajhi, Shahad bint Abdulkarim bin Muhamad Alrajhi and Mesha'el bint Abdulkarim bin Muhamad Alrajhi to purchase shares in the Company after listing it in Nomu Exchange in a direct listing, using his portfolio and the portfolio of a company owned by him. Then he sold and benefited from the increase in share price that resulted from his promotion of the share during the period from 15/02/2021 till 28/03/2021.
2. The conviction of Shaden bint Abdulkarim bin Muhamad Alrajhi, Shahad bint Abdulkarim bin Muhamad Alrajhi, Mesha'el bint Abdulkarim bin Muhamad Alrajhi and Abdulkarim bin Muhamad bin Abdulaziz Alrajhi for violating Article (49/a) of the Capital Market Law and Article (7) of the Market Conduct Regulations, by performing a series of transactions prior to and after the listing of Watani Iron Steel Co. on 17/02/2021 and up to 09/05/2021, the result of which increased their percentage of ownership in the Company's shares without disclosing this percentage to shareholders and the public, in addition to Abdulkarim bin Muhamad bin Abdulaziz Alrajhi ignoring to declare such practices and presenting incorrect information in the record of shareholders of the Company. Such acts and practices created a false and misleading impression in the document of the Company Shares Registration published in the CMA website on 17/01/2021.  

The decision included the imposition of a number of sanctions upon them according to the following:

First: Shaden bint Abdulkarim bin Muhamad Alrajhi:

1. Imposing a fine upon her amounting to (SR. 250,000) two hundred fifty thousand Saudi Riyals.
2. Obliging her to pay to the CMA account the amount of (SR. 1,790,800.00) one million seven hundred ninety thousand eight hundred Saudi Riyals against the illegal gains achieved in her investment portfolio.
3. Banning her from trading in shares by purchasing in the Saudi exchange either directly or indirectly for One year.

Second: Shahad bint Abdulkarim bin Muhamad Alrajhi:

1. Imposing a fine upon her amounting to (SR. 250,000) two hundred fifty thousand Saudi Riyals.
2. Obliging her to pay to the CMA account the amount of (SR. 8,096,000.00) eight million ninety-six thousand Saudi Riyals against the illegal gains achieved in her investment portfolio.
3. Banning her from trading in shares by purchasing in the Saudi exchange either directly or indirectly for One year.

Third: Mesha'el bint Abdulkarim bin Muhamad Alrajhi:

1. Imposing a fine upon her amounting to (SR. 250,000) two hundred fifty thousand Saudi Riyals.
2. Obliging her to pay to the CMA account the amount of (SR. 7,840,537.70) seven million eight hundred forty thousand five hundred thirty-seven Saudi Riyals and seventy Halalas against the illegal gains achieved in her investment portfolio.
3. Banning her from trading in shares by purchasing in the Saudi exchange either directly or indirectly for One year.

Forth: Riyadh bin Sulaiman bin Omar Alkhorashi:

1. Imposing a fine upon him amounting to (SR. 250,000) two hundred fifty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 18,709,727.60) eighteen million seven hundred nine thousand seven hundred twenty-seven Saudi Riyals and sixty Halalas against the illegal gains achieved in his investment portfolio.
3. Banning him from trading in shares by purchasing in the Saudi exchange either directly or indirectly for Two years.

Fifth: Abdulkarim bin Muhamad bin Abdulaziz Alrajhi:

1. Imposing a fine upon him amounting to (SR. 2,500,000) two million five hundred thousand Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for One year.

The decision also included obliging an investor to pay to the CMA the total amount of (SR. 5,058,406.50) five million fifty-eight thousand four hundred six Saudi Riyals and fifty Halalas against the illegal gains achieved in her investment portfolios that resulted from the illegal trading performed by the convicted person Riyadh bin Sulaiman bin Omar Alkhorashi.

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. ​