JEDDAH — The Saudi Capital Market Authority (CMA) has referred an investor, who is suspected of stock manipulation, to the Public Prosecution. The CMA announced that its board took this decision over the suspected violation that comes under Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations (MCR). The authority said in a statement that it was decided to refer the investor to the Public Prosecution because of his illegal practices, including manipulation and misleading. The violations involved in entering purchase orders with the aim of influencing the share price, some of which were linked to selling orders, and entering selling orders with the aim of affecting the share price and then buying while trading on the shares of a number of companies listed on the Saudi Stock Exchange. The authority affirmed its keenness on implementing the Capital Market Law and its executive regulations and to protect the market from illegal practices. It is to be noted that the General Secretariat of the Committees for Resolution of Securities Disputes will announce the identity of the violator to the public through its website when violations are proven and final decisions are issued by the committees against him. The persons affected by these violations, after being proven, have the right to file a lawsuit against the violator to claim compensation before the Committee under Article 57 of the Capital Market Law, provided that this is preceded by filing a complaint with the authority in this regard.
