CMA says shareholder compensations hit SAR 2.2 bln in last 4 years

Logo of Capital Market Authority (CMA) 

The Capital Market Authority (CMA) said that the value of shareholder compensations the errors and violations related to securities disputes rose by 4,275% to reach SAR 2.2 billion in the last four years, according to a statement.

The number of compensated persons reached 2,352 in the last four years, the authority added.

It also indicated that the volume of compensations in class-actions increased in 2022 to SAR 1.225 billion, representing about 70% of total compensations awarded by virtue of final verdicts in 2022.

Moreover, compensations against violators of the Market Conduct Regulation and Article 49 of the Capital Market Law rose 18% to SAR 323.5 million in 2022, from SAR 274.4 million in 2021.

The value of compensations against the practice of securities business without a license jumped by 202% to SAR 53.2 million in 2022, compared SAR 17.6 million a year earlier.

Meanwhile, the value of compensations against listed companies amounted to SAR 52.9 million in 2022, surging 300% compared to 2021, according to the market regulator.

The value of compensations against market institutions recorded SAR 37.5 million in 2022.

Other compensations reached SAR 59.7 million by the end of 2022.