The Saudi Capital Market Authority announced on Monday a decision to refer 22 investors to the Public Prosecution over suspicious trading in shares of a real estate development company and making illicit gains of SAR 1.33 billion ($354.6 million).
The Authority said that the investors were suspected of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations. The claim was referred to the Committee for the Resolution of Securities Disputes.
The statement added that the decision was based on the Authority’s responsibility to protect the financial market from unfair and improper practices that involve fraud and manipulation and to work to achieve fairness and transparency in securities transactions based on Article 17 of the Financial Market Law.
The Authority clarified in the statement that the Public Prosecution has filed the claim with the Committee for the Resolution of Securities Disputes, warning all dealers in the market that unlawful practices that involve fraud, deception, cheating, and manipulation are considered a criminal offense and expose the perpetrators to legal accountability and the penalties stipulated in the Financial Market System.
The Capital Market Authority also stressed that it would not hesitate to prosecute the manipulators in the financial market by monitoring their transactions, in implementation of its powers and based on the advanced technical means that enable it to monitor all transactions and suspicious cases and to take the necessary legal measures in accordance with the applicable laws and regulations.