The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision No. (3772/L.S/2025) of 1446 H., dated 29/11/1446 H., corresponding to 27/05/2025, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Bandar bin Abdulrahman bin Hamdan Alghamdi and Bandar Abdulrahman Hamdan Alghamdi Real Estate Company.
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, when they jointly performed a securities business, represented in the activity of “Managing", by establishing and operating real estate investment funds. The decision also concluded with the conviction of Bandar bin Abdulrahman bin Hamdan Alghamdi of violating Article (17) of the Securities Business Regulations when advertising such act via his personal account on the social media platform (X) without obtaining a license from the CMA.
The decision included the imposition of a number of sanctions upon them according to the following:
First: Bandar bin Abdulrahman bin Hamdan Alghamdi:
- Imposing a fine upon him amounting to (SR. 1,200,000) one million two hundred thousand Saudi Riyals for participating in the violation of Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations.
- Imposing a fine upon him amounting to (SR. 300,000) three hundred thousand Saudi Riyals for violating Article (17) of the Securities Business Regulations.
Second: Bandar Abdulrahman Hamdan Alghamdi Real Estate Company:
Imposing a fine upon the Company amounting to (SR. 1,200,000) one million two hundred thousand Saudi Riyals for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations.
Furthermore, any person who has entered into an agreement or contract with the convicted person and 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 and entity to apply to the CRSD to join the class action.
