Abu Dhabi: The Saudi Capital Market Authority (CMA) has referred more than 250 social media users to the Public Prosecution for disclosing internal information on Saudi Exchange (Tadawul)-listed companies, CMA said in a statement on Tuesday.
“Among the inside information shared were advertisements related to a company contracting with another to provide cooperative health insurance services, positive financial results for a company, capital increase and distribution of cash dividends to shareholders,” the statement said.
In addition, the supervisor of the group promoted opinions related to listed companies through the group, to influence their prices and achieve a personal benefit, as well as managing some portfolios without obtaining a license from the CMA. He also exploited such portfolios to commit violations involving manipulation and misleading the market.
The CMA confirmed its keenness to apply the Capital Market Law and protect the market from illegal practices.
The authority urged all participants and investors in the Saudi Exchange to limit their transactions in securities to the capital market institutions authorised by the CMA to carry out securities business.
It further requested investors not to deal with unauthorised persons, whether they were legal or natural persons, where their business is promoted via social media or any other means. They must also ensure that the persons with whom they deal have obtained the authority’s authorisation or visit the CMA’s website to view the list of the authorised capital market institutions.
The CMA also called upon all participants in the capital market to maintain the confidentiality of information about listed companies.
It said the General Secretariat of Committees for Resolution of Securities Disputes will announce to the public the identities of convicted violators on its website upon the issuance of final decisions by the Committees for Resolution of Securities Disputes.
The CMA added any person affected by these violations is entitled to file a compensation claim, after conviction, against the violators before to the Committee for the Resolution of Securities Disputes as per Article (57) of the Capital Market Law.
Furthermore, any person who has entered into any agreement or contract with an unauthorised person is entitled to file a claim, individually or collectively, to the Committee for the Resolution of Securities Disputes to rescind the agreement or contract and recover any money or other property paid or transferred pursuant to such agreement or contract, in accordance with paragraph (b) of Article (60) of the Capital Market Law, provided that these claims are preceded by a complaint filed to the CMA, it said.
