The Capital Market Authority's Committee for the Resolution of Securities Disputes imposed penalties and fines to four stockbrokers and one investor for violating the rules and regulations of the Saudi stock market. The Authority announced on Tuesday that Ali Bin Turki Bin Satum Bin Obika Al-Nussairi had committed a number of violations related to stocks speculations, particularly in violation of Article 49 of the Capital Market Authority and Articles 2 and 3 which define stock exchange conduct. He was found guilty and ordered to pay back SR2.693.114. He was also slapped with a fine of SR450,000. The infraction happened while he was speculating on the stocks of the Saudi Industrial Investment Group, Al Rajhi Bank, the Saudi Public Transportation Company (SAPTCO), Rabigh Refining and Petrochemicals Company and other companies. The Committee found him guilty of deceptive conduct which created a misleading and false impression on other speculators. The Authority also said the Committee had issued a final decision against Ali Maid Bin Radad Al-Zahrani and Radad Bin Saeed Bin Radad Al-Zahrani who were both found guilty of violating the same aforesaid Articles while speculating on the stocks of the National Cooperative Insurance Company on Jan. 1- 27, 2008. They were each fined SR100,000. Moreover, the Authority said the Committee has imposed fines on Abdul Rahman Bin Saleh Bin Ibrahim Al-Hadaif and investor Amal Bint Abdul Rahman Al-Manae. Al-Hadiaf was ordered to repaySR200,171 and fined him SR50,000. Amal Al-Manae was also ordered to repay SR240,539, which represented the illegal gains she made in her investment portfolio resulting from the violation made by her representative Al-Hadaif. The Committee also suspended for one year the two violators from engaging in investing activities. The Capital Market Authority is tasked to regulate and develop the Saudi Arabian stock market. It issues the required rules and regulations for the implementation of the provisions of capital market law.
