Saudi Arabia’s Capital Markets Authority (CMA) announced it has completed compensation for investors harmed by violations involving trading in Watani Iron Steel Co. shares before and after the company’s direct listing on the Parallel Market (Nomu), with payments deposited into investors’ accounts via a dedicated Compensation Fund. The violations were committed by five individuals convicted under an Appeal Committee for Resolution of Securities Disputes decision published on 4 April 2024, stemming from a penal case filed by the Public Prosecution and referred by the CMA. That decision required the defendants to pay SAR 41.4 million in illegal gains, which were distributed under a Committee for Resolution of Securities Disputes (CRSD) approved plan calibrated to the scale of the violations, the illegal gains, and the harm suffered; some individual compensation amounts exceeded SAR 1 million. The CMA said the fund was established under Article 59 of the Capital Market Law and is intended to complement other compensation routes, including individual claims and class actions. Any investor who considers themselves harmed but not included in the distribution plan may submit an individual claim to the CRSD seeking compensation.
Saudi Arabia Capital Markets Authority 2025-07-24
Saudi Arabia Capital Markets Authority completes compensation to investors affected by Watani Iron Steel share violations funded by SAR 41.4 million illegal gains
Saudi Arabia's Capital Markets Authority (CMA) has compensated investors affected by trading violations in Watani Iron Steel Co. shares using a Compensation Fund. Five individuals were ordered to pay SAR 41.4 million in illegal gains, with some compensations exceeding SAR 1 million. The fund, under Article 59 of the Capital Market Law, allows investors not included in the distribution to file claims with the Committee for Resolution of Securities Disputes.