In a significant move, Saudi Arabia's Capital Market Authority (CMA) has referred 25 individuals, suspected of market abuse and violation of the Capital Market Law and Market Conduct Regulations, to the Public Prosecution on Friday. The decision follows continuous monitoring and investigative efforts by the CMA.
The CMA's Board has taken two crucial decisions. The first involved the referral of 23 suspects, believed to have engaged in manipulative and deceptive practices. These individuals allegedly entered purchase orders to influence the share price and unit price during trading activities involving 72 listed companies on the Saudi Stock Exchange and one investment fund.
The second decision pertains to two additional suspects accused of similar manipulative and deceptive acts. They are suspected of entering purchase orders with the intent of affecting a higher closing auction price during trading on shares and units of 26 companies. Among these companies, one was listed on the Parallel Market (Nomu), and another involved an investment fund on the Saudi Stock Exchange.
The alleged violations are related to the shares of one investment fund and 84 listed companies, indicating the extensive implications of these actions on the Saudi capital market.
The General Secretariat of Committee for Resolution of Securities Disputes (GS-CRSD) will announce the identities of convicted violators on its website after final decisions by the committee. Those affected by these violations are entitled to file a compensation claim against the violators before the CRSD, after conviction.
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