RIYADH, 19 June 2005 — Forty-four senior executives and board members of 35 Saudi companies will be fined for trading in the stock market during a restricted period in 2004, a statement from the board of commissioners of the Capital Market Authority said yesterday.
Based on the contents of Clause B of Article 59 of the Law of CMA issued by the Royal Decree M/30 of 4/6/1424, a decision was taken by the board of commissioners of CMA to fine the board members and senior executives of some companies listed on the Saudi stock market for violating Article 33 of the Listing Rules of registering companies in Saudi Arabia.
The decision of the board of commissioners was based on the violation of Article 33 (Prohibition on dealings by directors and senior executives), which sets out the following conditions:
1- The directors and senior executives of the issuers and their associates may not deal in any securities of the issuer during the following periods:
a- During the 10 days preceding the end of the financial quarter and until the date of the announcement of the interim results of the issuer.
b- During the 20 days preceding the end of the financial year and until the date of the preliminary announcement of the issuer’s annual results or until the final announcement of the issuer’s annual results, whichever is the shorter.
The CMA decision also included the referral of eight cases of violations of article 33 of the Rules and Regulations of Listing Companies. It stated that such cases may have involved in insider trading.
According to the Law of CMA, violations of its rules and regulations by engaging in an act or transaction for the purpose of intentionally manipulating the price of Security, may lead to sanctions and penalties.
CMA has not specified in its report the list of the Saudi companies and the senior executives who have been fined for violating their laws.