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The Board of Directors of the Saudi Capital Market Authority has decided to refer to the prosecution the suspicion of 5 suspects violating Article 49 of the Financial Markets Law and Articles 2 and 8 of the Market Conduct Regulation .
The authority said in a statement today, Monday that this is due to their engaging in manipulative and deceptive practices in market trading, entering buy or sell orders in the aim to influence the price of the stock, and by trading (by purchase) on the shares of a number of listed companies, then promoting opinions on the social networking site (Twitter) via the identifier (@abukhalidahmid ), and the Saudi Stock Exchange Forum via the identifier (Bison Shares) for the purpose of influencing the price of the stock, then they trade (sell) shares of listed companies that have been affected by the opinions promoted.
She added that the suspected cases included their influence on the share prices of 37 companies listed on the Saudi Stock Exchange during the period from January 20, 2020 to early October 2020.
The Capital Market Authority has said it is in line with its responsibilities to protect the market from unfair and inappropriate practices and to work to ensure fairness, sufficiency and transparency in securities transactions. And based on Article 17 of the Capital Market Law.
In turn, the CEO of Investment in Mada’a Investment, Thamer Al-Saeed, said in an interview with Al-Arabiya that what happens in social media, “Social Media”, controls grassroots movements. of small traders in the Financial Markets.
He added that the effects of social media on the stock market come from certain social trends, including stock stories via forums on Twitter and other platforms, noting that it is not surprising to face such violations of the mobilization of traders through electronic platforms to commit violations in commerce. .
He said that the important aspect in this matter is that the Saudi Capital Market Authority is actively following and has the ability and flexibility to follow various details, with the aim of protecting investors.
Al-Saeed disagreed with what some traders say, that this type of supervision is similar to tutelage, explaining that the world’s major financial markets have witnessed such monitoring of what is happening. happening on traders via social media platforms.
The data of the companies whose shares were manipulated were as follows:
Juggler companies
Manipulated companies
Juggler companies
Juggler companies
The authority stressed that it would not hesitate to prosecute the manipulators in the financial market by monitoring their transactions according to its powers in accordance with the financial market system, and its advanced technical means which allow it to monitor all transactions. and to monitor suspicious cases, and quickly take the necessary legal measures in accordance with the laws and regulations, in order to achieve the Authority’s objectives aimed at strengthening the efficiency of the financial market, protecting its brokers against illegal practices and to ensure that they are not exposed to deception or manipulation.
She indicated that the General Secretariat of Securities Dispute Resolution Committees announces to the public on its website the identity of the offenders when final decisions are rendered by the commissions responsible for adjudicating securities disputes in cases. criminal. The committee complies with Article 57 of the Capital Market Law, provided that a complaint is filed with the Authority in this regard.
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