CMA warns market manipulators of prosecution

November 25, 2020

Saudi Gazette report

RIYADH — Saudi Arabia’s Capital Market Authority (CMA) warned that legal procedures will be taken against violators of its regulations in the capital market and will refer them to the Public Prosecution.

The authority alerted investors that it had detected a number of suspicious activities, including manipulation, misleading statements, and violation of the Capital Market Law and its executive regulations, in light of what the market witnessed from the rises and fluctuations in values of shares of some companies.

“The authority is working to complete the necessary procedures regarding these suspicious dealings in preparation for taking legal measures against the violators, including referring them to the Public Prosecution,” it said in a statement.

The CMA affirmed its keenness to implement the Capital Market Law and its executive regulations as well as to protect the market from illegal practices. It called on all dealers and investors in the financial market not to be led by any unjustified rises of share prices or rumors or unreliable information published by unauthorized persons, with the aim of misleading investors and exploiting them to move their money inside the financial market in certain directions that serves their illegal goals.

The authority urged all investors to obtain reliable information only from its sources, and that investors have to take their decisions related to making investments on the basis of this information and accurate data available about the listed companies.

“The investors must make investments in these companies through the licensed channels and this will be after examining financial statements of these companies as well as the efficiency of their current and expected future businesses and accurate disclosures. They should also ignore rumors, and stay away from illegal dealings,” the authority said while noting that these may expose the investors to losses or legal accountability.

The CMA statement said that investors can obtain reliable information through advertisements and statements of listed companies and through the websites of the Capital Market Authority and the Saudi Stock Exchange Company (Tadawul). The authority urged to take utmost caution, and learn and study about potential risks when investing in listed companies.

It also called on everyone to inform the authority in the event of detecting any practices that may constitute violations of the Capital Market Law and its executive regulations.

November 25, 2020
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