Dubai: Twenty-two investors have been referred to the Public Prosecution for their involvement in financial irregularities and manipulation that led them to making illicit gains of 1.3 billion riyals, local media reported on Monday.
The violating investors were referred by the Saudi Capital Market Authority, the financial regulatory body responsible for capital markets in the Kingdom.
The investors are suspected of manipulating and gaining more than 1.3 billion riyals by violating article 49 of the Financial Market Law and article 2 of the Market Conduct Regulations while trading in the shares of Dar Al Arkan Real Estate Development Company, the authority said in a statement.
The Public Prosecution has filed this case with the Committee for Resolution of Securities Disputes.
The authority called on all participants in the market that the illegal practices in the market involving fraud, deceit, cheating, and manipulation are considered criminal offenses that the perpetrator of which is subject to legal accountability and the imposition of the penalties stipulated in the Capital Market Law.
The authority stresses that it will not hesitate, in pursuit of prosecuting manipulators in the capital market, to supervise their transactions and deals, in line with its powers under the Capital Market Law.
The financial regulatory body will make the best use of the latest advanced technology to supervise all dealings and monitor suspicious cases and take the necessary legal procedures in accordance with the laws and regulations.
The authority coordinates with the competent security authorities, each within its jurisdiction, to pursue whoever attempts to manipulate or cheat in the capital market, which is a part of the CMA’s objectives toward enhancing the market efficiency and protecting the participant in it, besides ensuring they are not subject cheating or manipulation, the statement added.