Abu Dhabi: Saudi Capital Market Authority (CMA) plans to grant whistleblowers, who report fraudulent practices in the market a reward of at least SR200,000, local media reported.
A whistleblower, who has to fully and clearly describe the fraudulent practice, submit information, documents or evidence about it, will be granted a reward of up to 20 per cent of the value of the financial penalties collected as a result of the reported violations, if these penalties exceed one million riyals, Okaz reported.
The whistleblower has to provide his name, the report must be of his own free will, and must not be a relative of the employees of the Capital market Authority or other regulators.
Additionally, the information must not be available to the authority or has already been received. The informant must not have disclosed any information related to the report, Okaz added.
According to the regulation that is being studied, the Capital market Authority has the right to provide legal support to those harmed as a result of their report.
Whistleblowers will be able to submit their reports about any fraudulent practices through the authority’s website, registered mail, attendance in person at the authority’s headquarters, phone call, the electronic application for investor protection, any other means determined by the authority, Okaz said.
Last year, a share trader was found guilty of manipulation and fraud and fined a whopping SR696,000 for violating article 49 of the Financial Market Law and article 2 of the Market Conduct Regulations, while trading in the shares of Abdullah Abdul Mohsen Al Khodari and Sons Company and the National Agricultural Marketing Company in 2014.