The Capital Market Law Prohibits Violating Acts in the Stock Exchange, Refers Violators to Bureau of Investigation and Public Prosecution

Riyadh, Rabi’I 18, 1437, December 29, 2015, SPA — The Capital Market Authority (CMA) confirms its commitment to ensure fairness in securities transactions and limit cases of fraud, deceit, cheating, or manipulation that market participants might face which could negatively affect their transactions and the market’s reputation as well.
As part of its efforts to increase the market’s efficiency and protect investors, CMA works towards stopping violating acts and charges violators with penalties as stated in the Capital Market Law. The Market Conduct Regulations, issued by the Board of the CMA, has mentioned the violating and manipulative acts and its practices in the Saudi capital market. The regulation has also specified the concepts of disclosure and insider trading and the Authorized Persons’ conduct.
Article (2) of the (The Market Conduct Regulations) prohibits any person to engage in or participate in any manipulative or deceptive acts or practices in connection with an order or transaction in a security, if the person knows or has reasonable grounds to know the nature of the act or practice. It also is prohibited for any person to, directly or indirectly, enter an order or execute a trade in a security for the purpose of creating a false or misleading impression of trading activity or interest in the purchase or sale of the security; or an artificial bid price, ask price or trade price for the security or any related security.
11:52 LOCAL TIME 08:52 GMT