Saudi Gazette report

JEDDAH — Saudi Arabia’s Capital Market Authority, the financial regulatory authority responsible for capital markets in the Kingdom, said on Monday it has referred 22 investors suspected of manipulating and gaining more than SR1.3 billion to the Public Prosecution.

In a statement, the CMA said that the investors are suspected to have violated Article 49 of the Financial Market Law and Article 2 of the Market Conduct Regulations while trading in the shares of Dar Al-Arkan Real Estate Development Company.

The Public Prosecution has filed this case with the Committee for Resolution of Securities Disputes, the statement added.

The authority called on all participants in the market that the illegal practices in the market involving fraud, deceit, cheating, and manipulation are considered criminal offenses that the perpetrator of which is subject to legal accountability and the imposition of the penalties stipulated in the Capital Market Law.

“The CMA stresses that it will not hesitate, in pursuit of prosecuting manipulators in the capital market, to supervise their dealings, based on its powers under the Capital Market Law, and the advanced technology means it possesses that enable it to supervise all dealings and monitor suspicious cases and take the necessary legal procedures in accordance with the laws and regulations, the statement read.

“The Capital Market Authority states that it coordinates with the competent security authorities, each within its jurisdiction, to pursue whoever attempts to manipulate or cheat in the capital market, which is a part of the CMA's objectives toward enhancing the market efficiency and protecting the participant in it, besides ensuring they are not subject cheating or manipulation, the statement added.