Saudi Arabia’s Capital Markets Authority (CMA) announced a final decision by the Appeal Committee for Resolution of Securities Disputes (ACRSD) convicting ten investors of violating Article 49(a) of the Capital Market Law and Article 2(a) of the Market Conduct Regulations in trading on Dar Alarkan Real Estate Development Co. shares. The decision imposes total fines of SAR 860,000, orders payment of more than SAR 96 million relating to illegal gains, and bans the convicted individuals from purchasing shares (directly or indirectly) for two to three years. The ACRSD found the investors, acting individually and collectively, entered buy and sell orders to influence the share price and placed sell orders to achieve a higher closing bid price during the period from 03/02/2019 to 12/05/2020, using their own portfolios or others they managed, creating a false and misleading impression of the security. The ten convicted investors were ordered to pay SAR 64.2 million against illegal gains in their portfolios, and additional investors were ordered to pay a total of SAR 31.9 million to the CMA’s account for gains resulting from or benefiting from the illegal trading committed by three of the convicted individuals. Any person affected may file a compensation claim (individual or class action) with the Committee for Resolution of Securities Disputes (CRSD), provided a complaint is first filed with the CMA; the General Secretariat of the CRSD (GS-CRSD) will publish notice on its website if a class action is registered.
Saudi Arabia Capital Markets Authority 2025-06-26
Saudi Arabia Capital Markets Authority announces final ACRSD decision convicting 10 investors for Dar Alarkan share manipulation with SAR 860,000 fines and over SAR 96 million disgorgement
Saudi Arabia's Capital Markets Authority announced the conviction of ten investors for violating securities laws in trading Dar Alarkan shares. They were fined SAR 860,000, ordered to pay over SAR 96 million for illegal gains, and banned from purchasing shares for two to three years. The violations involved manipulating share prices to create a misleading market impression. Affected parties may file compensation claims with the Committee for Resolution of Securities Disputes.