Ertiyad Holding fined SAR 6.12M for violating Capital Market Law

The Capital Market Authority (CMA) announced the issuance of a final decision by the Appeal Committee for the Resolution of Securities Disputes, convicting Ertiyad Holding Group of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations.

A SAR 6.12 million fine was imposed on the group, the market regulator said in a statement today, Jan. 23.

The CMA said the appeal committee’s final decision convicted Ertiyad Holding of engaging in securities business activities, specifically acting as an agent by receiving funds and investing them in Tadawul in exchange for a profit share, without obtaining the required license from the CMA.

This final decision resulted from joint coordination and collaboration between the CMA and relevant entities, following a public criminal lawsuit filed by the Public Prosecution based on a referral from the CMA against the convicted party.

The CMA emphasized the importance of investor confidence in the growth and development of the capital market. It reaffirmed its commitment to monitoring any violations of the Capital Market Law, its implementing regulations, and other applicable laws under its jurisdiction.

The authority aims to detect violators, complete the necessary procedures to impose deterrent penalties, and foster an attractive investment environment free from unfair, fraudulent, misleading, or manipulative practices.

Meanwhile, the General Secretariat of the Committees for the Resolution of Securities Disputes (GS-CRSD) announced that individuals who entered into agreements or contracts with the convicted party related to this violation could file individual or collective lawsuits with the committee to demand the termination of such agreements or contracts and claim any funds or other assets paid or transferred in this respect.

This is in accordance with paragraph (b) of Article 60 of the Capital Market Law, provided that a complaint is first submitted to the CMA.

The GS-CRSD also noted that it would publicly announce on its website when any collective lawsuits are filed, allowing other investors who have entered into agreements or contracts with the convicted party to take part in the case.