Saudi revokes Ernst & Young securities licence

Dubai Saudi Arabia's Capital Market Authority, or CMA, said yesterday it revoked the securities business licence of Ernst & Young because of "several violations" of the kingdom's capital market law and implementing regulations.

Ernst & Young Saudi Arabia Consulting was given a licence to arrange and advise on activities in the securities business in the Arab world's largest economy in May 2006, CMA said in a statement posted on the Saudi bourse website.

Ernst & Young was not immediately available for comment.

Over the past months, the kingdom's market regulator has asserted more control over the stock market, the Arabian Gulf's best performer this year so far, in an effort to stamp out manipulative and speculative trading, and attract more stable institutional and foreign investors.

The CMA issued its first prison sentence in Aug-ust, locking up the former chairman of Bishah Agricultural Development Co for three months, for disclosure violations.

The Tadawul, as Riyadh's stock exchange is known, has long been closed to the rest of the world through stringent foreign investment rules and has remained dominated by local retail investors.