Saudi Arabia’s Capital Markets Authority announced two final decisions by the Appeal Committee for Resolution of Securities Disputes against 24 investors and a real estate company, imposing fines, disgorgement of illegal gains and, in one case, a one-year trading ban. The cases cover market manipulation in listed securities and conducting securities business without a licence, including establishing and operating real estate investment funds. In the first decision, 23 investors were convicted of violating Article 49(a) of the Capital Market Law and Article 2(a) of the Market Conduct Regulations for placing purchase orders intended to influence the price of shares or units and then selling, when trading shares of several listed companies and units of a listed real estate investment fund between 03/01/2021 and 16/08/2022. The conduct was found to constitute manipulation and fraud and to create a false and misleading impression, resulting in a one-year prohibition on trading directly or indirectly in the capital market except through investment funds with capital market institutions, fines of approximately SAR 1 million, and an order to pay more than SAR 1.21 million in illegal gains, with a separate investor also required to pay SAR 74.9 thousand in illegal gains linked to the offending trading. In the second decision, Bandar bin Abdulrahman bin Hamdan Alghamdi and Bandar Abdulrahman Hamdan Alghamdi Real Estate Company were convicted of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations for carrying out a securities business activity, described as managing through establishing and operating real estate investment funds, and Alghamdi was also convicted under Article 17 of the Securities Business Regulations for advertising on the social media platform X without a CMA licence, with fines of SAR 2.7 million. The General Secretariat of the Committee for Resolution of Securities Disputes stated that affected persons may bring compensation claims, including class actions, before the Committee for Resolution of Securities Disputes in relation to the first decision, and that parties who entered agreements or contracts linked to the second decision may seek rescission and recovery under Article 60(b) of the Capital Market Law. It also noted that a complaint must first be submitted to the CMA, and that any registered class action will be announced publicly on its website to enable other affected investors to join.
Saudi Arabia Capital Markets Authority 2025-11-06
Saudi Arabia Capital Markets Authority announces final ACRSD decisions fining 24 investors and a real estate company over SAR 2.7 million and ordering SAR 1.2 million disgorgement
Saudi Arabia's Capital Markets Authority announced final decisions against 24 investors and a real estate company for market manipulation and unlicensed securities activities. Twenty-three investors were fined SAR 1 million, ordered to disgorge SAR 1.21 million, and banned from trading for a year. Bandar bin Abdulrahman bin Hamdan Alghamdi and his company were fined SAR 2.7 million for unlicensed activities. Affected parties may seek compensation or contract rescission.