The Capital Market Authority (CMA) announced that it monitored through follow-up procedures the existence of a group on a social media program with more than (250) members through which internal information of companies listed on the Saudi Stock Exchange is disclosed before it is announced by those companies on the website of the Saudi Tadawul Group, including announcements related to (contracting a company with another company to provide cooperative health insurance services, positive financial results of a company, capital increase and cash dividends to shareholders).
In addition, the supervisor of the mentioned group committed a number of violating behaviors by promoting opinions related to companies listed on the Saudi Stock Exchange through the group with the aim of influencing their prices and benefiting personally from that, managing a number of investment portfolios without obtaining a license from the Authority, and using those investment portfolios to commit violations involving manipulation and misinformation in the Saudi financial market.
The control and investigation work resulted in a number of persons committing violations related to disclosure of inside information of companies listed on the Saudi Stock Exchange, including these persons After identifying those responsible for these violations, the CMA Board issued its decision to refer a number of suspicions to the Public Prosecution, in accordance with the following:
On the group of Article 31 and Article 49 of the Capital Market Law, Article 5 of the Securities Business Regulation, Article 2 and Article 8 of the Market Conduct Regulation, to the Public Prosecution; for his responsibility to manage a number of investment portfolios in the Saudi financial market without obtaining a license from the Commission and committing through these portfolios acts that involve manipulation and misleading market trades, and the resulting suspicion Those affected by these violations, once proven, have the right to file a lawsuit against the violators to claim compensation before the Commission in accordance with Article 57 of the Capital Market Law, and those who agreed or contracted with an unlicensed person have the right to apply under paragraph (b) of Article 60 of the Law, individually or collectively to the Securities Dispute Resolution Committee to request the termination of the agreement or contract and to recover any money or other property that he paid or transferred under the agreement or contract, provided that filing a lawsuit is preceded by a complaint to the Commission in this regard
Recover the agreement or contract.
