Saudi: $4.53mln fines slapped on 16 individuals and companies convicted of violating Capital Market Law
Nine officials of the Saudi Exports Development Authority were convicted and fined SR6.9 million for violations including recording misleading data in the annual financial statements for various periods and violating the Companies Law.
The violations committed by the officials included recording misleading data by the executive management in the annual financial statements.
This resulted in inflating the company's revenues by recognizing revenue from a deal with an institution, amounting to SR12 million, without meeting the recognition requirements in accordance with the accounting and auditing standards approved by the Saudi Organization for Certified Public Accountants (SOCPA).
In other cases, a company and the three persons were fined SR4.1 million. Two convicted persons and other investors were also ordered to pay a fine of SR 5.91 million, while another convicted person was sent to jail for 90 days.
The CMA explained that these actions and practices constituted manipulation and fraud, creating a misleading and incorrect impression regarding the securities of the mentioned companies.
A fine of SR1.675 was imposed on the convicted Abdulrahman bin Saleh Al-Rashed, in addition to requiring him to pay SR1.252 million for the illicit gains made on his investment portfolio and SR2.261 million for the illicit gains made on the investment portfolios of his two minor children.
Additionally, a fine of SR230,000 was imposed on the convicted Nasser bin Abdulaziz Al-Turki, along with an obligation to pay SR538,000 for the illicit gains obtained from his investment portfolio. Other investors were also required to pay SR1.864 million for illicit gains obtained from their investment portfolios, which resulted from the violative trades committed by Abdulrahman bin Saleh Al-Rashed.
The committee convicted Ammar Salem Bakhriba, Elmar Capital, and Elmar Financial Company of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations. Bakhriba engaged in securities activities, including management, by offering and managing an investment fund and receiving clients' funds for investment in that fund. Elmar Capital and Elmar Financial Company also participated in this activity by managing the fund and receiving clients' funds for investment in it, in exchange for a percentage of the invested amounts, without obtaining a license from the Capital Market Authority. The decision included imposing a number of penalties on them. Ammar Salem Bakhriba was sentenced to 90 days in prison and fined SR1 million, while Elmal Capital was fined SR1million.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
3 days ago
- Zawya
Saudi stock market may open to global investors, regulator says
RIYADH — Saudi Arabia's Capital Market Authority (CMA) is currently studying the feasibility of opening the Saudi stock market to all investors worldwide, according to a statement given to Bloomberg. The CMA said that the recent move to allow residents of Gulf Cooperation Council (GCC) countries to trade directly in the Saudi market was a 'logical and natural' step, citing strong economic, social, and regulatory ties across the region. Notably, these residents will remain eligible to trade even if they relocate outside the Gulf. The move comes amid broader efforts by the Kingdom to liberalize its financial markets, attract global investors, and diversify sources of capital. Foreign investors from outside the GCC accounted for a record 35% of Saudi equity purchases during the second quarter of 2025, according to Bloomberg Intelligence. Saudi Arabia has ramped up its push to attract high-frequency trading firms, broadened the diversity of its IPO pipeline, and relaxed some restrictions for foreign participation in the equity market. In July, Saudi-listed shares on the Tadawul All Share Index (TASI) were trading at a 32% discount compared to stocks on the MSCI All Country World Index (ACWI), based on forward price-to-earnings ratios. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
4 days ago
- Zawya
Saudi restaurant chain Shatirah House to hike capital by 60%
Saudi Arabia's Shatirah House Restaurants (Burgerizzr) has obtained the approval from the Capital Market Authority (CMA) to increase its capital by 60%. The hike will include the issuance of 21 million new shares, with shareholders to be given three bonus shares for every five shares they currently own. Shatirah, which owns and operates a chain of restaurants, intends to capitalise 21 million riyals ($5.6 million) from retained earnings to increase its capital. The capitalisation will increase its capital from SAR 35 million to SAR 56 million. Shatirah will still hold an extraordinary general assembly to approve the capital adjustment. (Writing by Cleofe Maceda; editing by Brinda Darasha)
Dubai Eye
5 days ago
- Dubai Eye
UAE signs deal to help advance Emirati accounting, finance professionals
The UAE Ministry of Finance (MoF) has signed an agreement with the Institute of Management Accountants (IMA) to help prepare national employees for the Certified Management Accountant (CMA) and Financial and Managerial Accounting Associate (FMAA) certifications. Under the agreement, advanced training programmes leading to the CMA and FMAA certifications will be offered, enhancing the development of national professional talent in the financial and accounting sector and reinforcing excellence in institutional performance. It aims to establish a comprehensive framework of cooperation between MoF and IMA in the fields of accounting, financial management, and business development, leveraging IMA's expertise and specialised programmes to qualify accountants and financial professionals within the Ministry and across federal government entities. The two sides will also work together to organise specialised professional events, including conferences, seminars, workshops, forums and round tables, aimed at bolstering ongoing professional development efforts for accounting and financial management professionals across the country. The Undersecretary of the Ministry of Finance, Younis Haji AlKhoori, said the new partnership will support the Ministry's strategy aimed at bringing about a paradigm shift in the development of national financial talent, reinforcing leadership in public finance and sustainable development. The deal builds on previous initiatives to develop national talent that helped qualify over 145 Emirati employees in collaboration with other international associations in the areas of accounting standards, public finance and financial sustainability.
