Saudi CMA Fines Investors and Real Estate Company for Market Manipulation
The Saudi Capital Market Authority (CMA) has fined 24 investors and a real estate firm nearly $1 million for breaching capital market laws. These actions reflect violations of regulations aimed at preserving market integrity.
Details of the Cases
The CMA’s Appeals Committee for Securities Disputes issued final verdicts in collaboration with relevant government bodies. The rulings followed investigations conducted by the Public Prosecution, which filed criminal cases against the offenders.
Stock Price Manipulation
In one notable case, 23 investors were found guilty of manipulating stock and fund prices from March 2021 to August 2022. They coordinated buy and sell orders to falsely simulate market activity, misleading other market participants.
- Fines totaled SAR 1 million (approximately US$270,000).
- They received a one-year ban from direct or indirect trading.
- Ordered to return SAR 1.21 million (about US$320,000) in illegal profits.
- Violations included Paragraph (a) of Article 49 of the Capital Market Law and Paragraph (a) of Article 2 of the Market Conduct Regulations.
Additional Investor Penalty
Another investor linked to similar violations was ordered to repay SAR 74,900 (US$19,970) in illicit gains.
Unauthorized Securities Business
Bandar bin Abdulrahman bin Hamdan Al-Ghamdi and his real estate company were found guilty of operating a securities business without the necessary authorization, leading to separate fines.
“The rulings were issued in coordination with relevant government entities and based on criminal cases filed by the Public Prosecution following its own investigations.”
Author's summary: The Saudi Capital Market Authority imposed significant fines and penalties on multiple investors and a real estate company for market manipulation and unauthorized securities trading, reinforcing regulatory enforcement.