ACRSD imposes SAR 11.1M fine on capital market violators

Logo of General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD)

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (3280/L.S/2024) of 1445 H., dated April 3, 2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Mohammed bin Nawaf bin Mohammed Alharbi and Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi.

In a statement, GS-CRSD said the decision concluded with the conviction of the abovementioned individuals of violating Article (49) of the Capital Market Law and Article (8) of the Market Conduct Regulations. This occurred when Mohammed bin Nawaf bin Mohammed Alharbi, during the period between July 5, 2020 until June 7, 2021, and Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, during the period between Dec. 29. 2019 until Dec. 18, 2021, promoted an opinion aiming at affecting the share price of a number of companies listed in the Saudi Exchange via their accounts in the social media platform X (previously known as Twitter) using the user account (@mnawafms) belonging to Mohammed bin Nawaf bin Mohammed Alharbi, and the user account (@nawafmsz) belonging to Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi. They urged others to purchase or sell shares of Bank AlJazira, Sadr Logistics Co., Methanol Chemicals Co., Saudi Arabia Refineries Co., National Gypsum Co., Wafrah for Industry and Development Co., Saudi Advanced Industries Co., the National Company for Glass Industries, Filing and Packing Materials Manufacturing Co., Saudi Vitrified Clay Pipes Co., Umm Al-Qura Cement Co., Thob Al Aseel Co., Baazeem Trading Co., Tabuk Agricultural Development Co., Ash-Sharqiyah Development Co., Al-Jouf Agricultural Development Co., and Arab Sea Information System Co.

The decision included the imposition of a number of sanctions upon the violators according to the following:

First: Mohammed bin Nawaf bin Mohammed Alharbi will be fined SAR 500,000 and will be banned from trading by purchasing shares in the Saudi exchange, either directly or indirectly, excluding trading through investment funds with Capital Market Institutions for two years. He will also be banned from working in bodies under the supervisions of the CMA for two years.

Second: Nawaf bin Mohammed bin Jam'an bin Alsukhaiber Alharbi will be fined SAR 10.6 million and banned from trading by purchasing shares in the Saudi exchange, either directly or indirectly, excluding trading through investment funds with Capital Market Institutions for five years. He will be also banned from working in bodies under the supervision of the CMA for five years.

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard.

However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.