Arab News, Saturday, Nov 28, 2020 | Rabi Al Thani 13, 1442
Saudi regulator identifies market fraud and scams
Saudi Arabia:
The Capital Market Authority (CMA) identified some cases suspected of
manipulations, fraud and scam of the capital market rules and its executive
regulations, amid the price fluctuations of some stocks.
The Saudi market regulator is finalizing the required paperwork to take the
necessary regulatory measures with regard to those violators, including their
referral to the Public Prosecution.
The CMA pointed out that it is keen to enforce the stock market executive
regulations and protect the market from illegal practices.
Therefore, the market regulator urged all participants and investors not to be
misguided by any unjustified stock gains, rumors, or unreliable information
published by unauthorized persons, who seek to mislead investors and use
investors’ money to their advantage.
The market regulator called on all investors to get information from their
reliable resources, so that they can make the right decision, based on the
accurate information available on all listed companies, their financial
statements, the current and expected operational efficiency, and the accurate
disclosures from authorized channels.
The CMA also highlighted the importance of disregarding rumors and keeping away
from illegal dealings, as such untrue statements and dealings could lead
investors to incur losses or become legally accountable.
Investors can obtain reliable information from the announcements and disclosures
of listed companies, as well as the websites of the CMA and the Saudi Stock
Exchange (Tadawul), the market regulator added.
The CMA urged all investors to exercise caution and study risks if they plan to
start investment in listed companies.
It also called on market participants to report any violations of the capital
market law and its executive regulations, through this link