ACRSD also sentenced one of the investors to six months' imprisonment for not adhering to Capital Market Law
At least 10 people have been ordered to pay SAR101.7 million (£21.3 million) for committing violations, including insider trading, to make illegal gains in their investment portfolios in Saudi Arabia.
The kingdom’s Appeal Committee for Resolution of Securities Disputes (ACRSD) also sentenced one of the investors to six months' imprisonment for not adhering to the Capital Market Law (CML), according to a statement on Thursday.
The total amount includes SAR670,000 in fines and SAR101 million in averted trading losses resulting from the breaches committed by the respondents, the statement, posted by the Capital Market Authority (CMA), said.
The financial regulator said offences that result in avoided losses include providing misleading information, making false statements and other unlawful practices that enable the investors to avoid actual or potential losses, influencing the security’s price or encouraging others to make a purchase.
In addition to the fines, ACRSD ordered seven of the investors to pay SAR50.4 million and another one, a woman, to pay SAR50.5 million to the CMA account. The additional charges are also for the losses the investors avoided after committing violations.
Due to the offences committed, the ACRSD banned the 10 investors from working in companies listed on the Saudi Stock Exchange for various periods, ranging from one to six years.
The ACRSD issued the ruling following joint coordination and cooperation between the CMA and relevant authorities, and considering the lawsuit filed by the Public Prosecution.
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