Violator of Capital Market Law convicted

Logo of Capital Market Authority

The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) said the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) issued, on Sept. 3, its final decision in the public penal case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against Omar Al Zamil.

Under the decision, Al Zamil will be convicted for violating the Capital Market Law and its Implementing Regulations, pertaining to engaging in securities activities, including investment portfolio management, without being licensed by the CMA. This is besides the illegal trading of shares of Electrical Industries Co., Saudi Steel Pipe Co., National Petrochemical Co. (Petrochem), National Gypsum Co., Saudi Arabian Amiantit Co., Al Kathiri Holding Co., Al-Omran Industrial Trading Co. (Al-Omran), Saudi Printing and Packaging Co. (SPPC), Al Gassim Investment Holding Co. (GACO), and Wataniya Insurance Co., as well as units of AlJazira REIT.

Accordingly, the violator gave investors a misleading impression of the shares and units of the abovementioned entities. He also entered into orders to influence the stock prices, some of which were linked to sell and buy orders that were not meant for execution, during the period between July 15, 2020, and Dec. 10, 2020.

Under the ACRSD decision, the convict was fined SAR 390,000 and was ordered to pay to the CMA an amount of SAR 35,560, against the generated illegal gains.

Additionally, the decision required investors involved with Al Zamil to collectively pay a total of SAR 497,730 to the authority for their illegal gains in their investment portfolios.

Those affected by these violations reserve the right to file individual or collective claims with the committee for compensation for damages caused by these violations.

(To view the dates of trading and securities in relation to the violations, click here​)