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    CMA refers 25 suspects to prosecution for violating Saudi capital market law


    Sep 15, 2023

    Saudi Gazette report

    RIYADH — The Capital Market Authority (CMA) has announced the referral of 25 individuals suspected of violating the Capital Market Law and its Implementing Regulations to the Public Prosecution. This move comes as a result of continuous monitoring and investigative efforts undertaken by the CMA.

    The CMA’s Board has issued two crucial decisions in this regard. The first decision involved the referral of 23 suspects. These individuals are alleged to have engaged in manipulative and deceptive practices, specifically through the entry of purchase orders aimed at influencing the share price and unit price (including some related to sell orders) during trading activities involving 72 listed companies on the Saudi Stock Exchange, as well as one investment fund.

    The second referral to the Public Prosecution pertains to two suspects who are accused of similar manipulative and deceptive acts. These individuals are believed to have entered purchase orders with the intent of influencing the share price and unit price (some related to sell orders) and to affect a higher closing auction price during trading on shares and units of 26 companies. Among these, one company was listed on the Parallel Market (Nomu) and another involved an investment fund on the Saudi Stock Exchange.

    It is important to note that these alleged violations are related to the shares of one investment fund and 84 listed companies, underscoring the far-reaching implications of these actions on the Saudi capital market.

    The CMA emphasized its unwavering commitment to the application of the Capital Market Law and its Implementing Regulations. Its primary goal is to safeguard the market from illegal and manipulative practices that can undermine investor confidence and market integrity.

    In line with its mandate, the CMA has made it clear that it will not hesitate to utilize its powers under the Capital Market Law to closely monitor and prosecute any individuals involved in manipulative activities within the capital market. The authority’s actions reflect its dedication to maintaining a fair, transparent, and secure investment environment for participants and investors in the Saudi capital market.

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