The Saudi Capital Market Authority has announced the monitoring of the presence of a group on a program of social network which includes more than (250) members, through which inside information is disclosed for companies listed on the Saudi stock exchange before it is announced in regularly by those companies on the site web of the Saudi Tadawul Group. .
The authority added in a statement today, Tuesday, that among those inside information were announcements related to (a company contracting with another company to provide cooperative health insurance services, positive financial results for one of the companies, raising capital and distributing dividends in cash to shareholders).
The authority reported that the supervisor of the aforementioned group has committed a number of illicit behaviors by promoting views related to companies listed on the Saudi stock exchange through the group with the aim of influencing their prices and their personal advantage therefrom, and managing a series of investment portfolios without obtaining a license from the authority and exploiting such investment portfolios to commit violations involving manipulation and deception in the Saudi financial market.
According to the Authority’s statement, the seizure and inference actions have led to the committing of some violations related to the disclosure of internal information for companies listed on the Saudi stock exchange, including those that work in companies listed on the market. After identifying the perpetrators of these violations, the Council of the Capital Market Authority issued its decision referring some suspicions to the Public Prosecutor’s Office.
The Authority’s decision included the referral to the public prosecution of the suspected violation by the group supervisor of Article 31 and Article 49 of the Capital Market Law, Article five of the Financial Activities Regulation and Articles Two and Eight of the Market Conduct Regulation; Responsible for managing a range of investment portfolios on the Saudi Stock Exchange without obtaining a license from the Authority and for committing, through these portfolios, actions involving manipulation and deception in market transactions.
The Authority specified that this stemmed from the suspicion of his trading through his investment portfolios and the investment portfolios he managed on shares of some companies listed on the Saudi stock exchange. to achieve a high closing auction price and to reach a high closing price, by entering a buy order with knowledge of the existence of a sell order similar in size, timing and price, as well as trading (buying) on the shares of a number of companies listed in the financial market, then promoting opinions via the aforementioned group with the aim of influencing the price of the stock, then trading (selling it) on the shares of companies listed in the financial market that have been affected by the opinions that are you are being promoted and your personal benefit from it.
The decision to postpone the suspicion was made on the basis of a violation by some insiders, including employees of some companies listed on the Saudi Stock Exchange, Article 50 of the Capital Market Law and Article Five of the Market conduct regulation. For disclosing inside information relating to these companies prior to announcing them in regularly on the website of the Saudi Tadawul group.
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