Two Violators of the Capital Market Law and Its Implementing Regulations Fined SAR 11.1 Million for Violations on the X Platform
The Appeal Committee for Resolution of Securities Disputes (ACRSD) has convicted two violators of the Capital Market Law and its implementing regulations, imposing financial penalties totaling SAR 11.1 million. The convictions stemmed from their promotion of opinions via their accounts (@mnawafms) and (@nawafmsz) on the social media platform X (formerly Twitter) to influence the share prices of 17 listed companies in the Saudi Stock Exchange and encourage others to buy or sell shares through their accounts on the aforementioned platform.
According to the Capital Market Authority (CMA), ACRSD issued its final decision convicting each of Mohammed bin Nawaf bin Mohammed Alharbi, the owner of the account (@mnawafms), and Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, the owner of the account (@nawafmsz), for violating Article (49) of the Capital Market Law and Article (8) of the Market Conduct Regulations as the first convicted person, Mohammed bin Nawaf bin Mohammed Alharbi, during the period from 05/07/2020 until 07/06/2021, and the second convicted person, Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, during the period from 29/12/2019 until 18/12/2021 have circulated an opinion via their accounts on the social media Platform X (formerly known as Twitter), with user accounts mentioned above, and urged others to buy or sell in the shares of the following companies: 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 Appeal Committee's decision imposed several penalties on them. Mohammed bin Nawaf bin Mohammed Alharbi, the holder of (@mnawafms) user account, was fined SAR 500,000 and banned from trading by purchasing shares in the Saudi exchange, directly or indirectly, except through investment funds with capital market institutions, for two years. He was also banned from working in entities under the supervision of the CMA for two years. Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, the holder of (@nawafmsz) user account, was fined SAR 10.6 million and banned from trading by purchasing shares in the Saudi exchange, directly or indirectly, except through investment funds with capital market institutions, for five years. He was also banned from working in entities under the supervision of the CMA for five years.
The CMA explained that the detection of the suspected violation in this case was based on continuous monitoring, coordination, and joint cooperation between the Capital Market Authority and the General Department of Saudi Arabia Financial Investigation Unit (SAFIU) at the Presidency of State Security. This was followed by the referral of the case to the Public Prosecution for it to be presented before the Committee for the Resolution of Securities Disputes.
The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, misleading, deception or manipulation.
Furthermore, any person affected by these violations, in this case, is entitled to file a compensation claim (as individual or class action) against those two convicted persons with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: ( File Complaint). However, the General Secretariat of the Committee for Resolution of Securities Disputes (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.
The CMA indicated that the GS-CRSD announced to the public on its website the identity of the violators after the violations and sanctions were proven and the final decision was issued by ACRSD. It can be viewed through the following link ( Announcement link)
To view the trading history and the security subject to the violation click here
According to the Capital Market Authority (CMA), ACRSD issued its final decision convicting each of Mohammed bin Nawaf bin Mohammed Alharbi, the owner of the account (@mnawafms), and Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, the owner of the account (@nawafmsz), for violating Article (49) of the Capital Market Law and Article (8) of the Market Conduct Regulations as the first convicted person, Mohammed bin Nawaf bin Mohammed Alharbi, during the period from 05/07/2020 until 07/06/2021, and the second convicted person, Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, during the period from 29/12/2019 until 18/12/2021 have circulated an opinion via their accounts on the social media Platform X (formerly known as Twitter), with user accounts mentioned above, and urged others to buy or sell in the shares of the following companies: 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 Appeal Committee's decision imposed several penalties on them. Mohammed bin Nawaf bin Mohammed Alharbi, the holder of (@mnawafms) user account, was fined SAR 500,000 and banned from trading by purchasing shares in the Saudi exchange, directly or indirectly, except through investment funds with capital market institutions, for two years. He was also banned from working in entities under the supervision of the CMA for two years. Nawaf bin Mohammed bin Jam'an Alsukhaiber Alharbi, the holder of (@nawafmsz) user account, was fined SAR 10.6 million and banned from trading by purchasing shares in the Saudi exchange, directly or indirectly, except through investment funds with capital market institutions, for five years. He was also banned from working in entities under the supervision of the CMA for five years.
The CMA explained that the detection of the suspected violation in this case was based on continuous monitoring, coordination, and joint cooperation between the Capital Market Authority and the General Department of Saudi Arabia Financial Investigation Unit (SAFIU) at the Presidency of State Security. This was followed by the referral of the case to the Public Prosecution for it to be presented before the Committee for the Resolution of Securities Disputes.
The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, misleading, deception or manipulation.
Furthermore, any person affected by these violations, in this case, is entitled to file a compensation claim (as individual or class action) against those two convicted persons with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: ( File Complaint). However, the General Secretariat of the Committee for Resolution of Securities Disputes (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.
The CMA indicated that the GS-CRSD announced to the public on its website the identity of the violators after the violations and sanctions were proven and the final decision was issued by ACRSD. It can be viewed through the following link ( Announcement link)
To view the trading history and the security subject to the violation click here
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