Announcement for the referral of a suspicion of violating Article (31) of the Capital Market Law and Articles (5) and (17) of the Securities Business Regulations to the Public Prosecution
In line with the Capital Market Authority's (CMA) responsibilities to protect the citizens and investors from unfair and unsound practices, and aiming to achieve fairness, efficiency and transparency in securities transactions, the CMA informs investors and participants in the capital market that a CMA Board resolution has been issued regarding the referral of a suspicion of a violation to the Public Prosecution. The suspicion is regarding the violation of Article (31) of the Capital Market Law and Articles (5) and (17) of the Securities Business Regulations by two suspects for one of them carrying out securities business, represented in the activity of “Advising", through a Telegram channel named (Abu Abdallah) with the username (abo_3abdallah_chart), without obtaining a license from the CMA, and for the other participating in the violation by receiving subscription fees through his bank accounts and transferring them to the first suspect, in exchange for a commission.
The CMA assures its devotion to apply the Capital Market Law and its Implementing Regulations, and to protect the market from illegal practices, and calls on all participants and investors in the Saudi Stock Exchange to limit their transactions in securities to capital market institutions authorized by the CMA to carry out securities business. It further requests them not to deal with unauthorized persons, whether they were of legal or natural personality, and must ensure that the persons with whom they deal have obtained the Authority's authorisation, or visit the CMA's website on WWW.CMA.GOV.SA to view the list of the authorised capital market institutions. It is worth noting that the General Secretariat of Committees for Resolution of Securities Disputes will announce to the public the identities of convicted violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes.
Furthermore, any person who has entered into any agreement or contract with an unauthorised person is entitled to file a claim, individually or collectively, to the Committee for the Resolution of Securities Disputes to rescind the agreement or contract and recover any money or other property paid or transferred pursuant to such agreement or contract, in accordance with paragraph (b) of Article (60) of the Capital Market Law, and provided that such claim is preceded by a complaint to the CMA (via this link).
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