Dubai: A trader in shares has been found guilty of manipulation and fraud and has been fined a whopping SR696,000, Okaz Newspaper reported yesterday.
The case against the trader was filed by the Public Prosecution on behalf of the Capital Market Authority (CMA).
The Secretariat General of the Committees for Resolution of Securities Disputes found the trader guilty of 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.
The disputes committee said the trader’s actions and practices constituted manipulation and fraud and created a misleading and incorrect impression on the securities of the two companies involved.
The appellate committee ruling comprises a fine of SR30,000 and forcing the violator to deposit SR666,000 in the account of the Capital Market Authority (CMA) as a punishment for his illicit gains made on his two investment portfolios. This brings the total amount to be paid by the violator to SR696,000.
Furthermore, the ruling also said anyone harmed by the fraudulent practices of the trader can file a lawsuit before the committee, demanding compensation under Article 57 of the Capital Market Law.
