SR17 million fines slapped on 16 individuals and companies convicted of violating Capital Market Law
Saudi Gazette report
RIYADH — The Committee for the Resolution of Securities Disputes, under the Capital Market Authority (CMA), has slapped fines amounting to more than SR17 million on 16 individuals and companies for violating the provisions of the 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
6 days ago
- Arab News
Saudi airline flynas' IPO oversubscribed by nearly 350%
RIYADH: Saudi low-cost carrier flynas finalized its initial public offering share allocation at SR80 ($21) per share, the top of its indicated range, following robust demand from institutional and retail investors. The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing. The offering comes after flynas announced plans last month to float 30 percent of its share capital on the Saudi Exchange, becoming the first airline in the Kingdom to go public and the Gulf's first in nearly two decades. Between May 28 and June 1, 666,069 retail investors oversubscribed the offering by nearly 350 percent, receiving 10.25 million shares, or 20 percent of the total. Institutional investors showed even stronger appetite, oversubscribing their tranche by roughly 100 times, with orders totaling SR409 billion from both local and international buyers. In a press release, flynas stated: 'Each retail investor was allocated a minimum of 10 shares, with the remaining shares allocated on a pro-rata basis in proportion to the size of demand, resulting in an average allocation factor of 12.3 percent.' It added: 'Any surplus subscription funds will be refunded to retail investors no later than Thursday, 5 June 2025.' The company's shares are expected to list and begin trading on the Main Market of the Saudi Exchange once regulatory requirements are met with the Capital Market Authority and the exchange. The exact listing date will be announced in due course. The IPO marks a key milestone for the company as it seeks to strengthen its market position and expand its operational footprint. 'This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030,' Bander Al-Mohanna, CEO and managing director of flynas, said last month. He added: 'Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.' The strong interest from both retail and institutional investors reflects rising confidence in the Kingdom's aviation sector and its broader economic diversification efforts. Launched in 2007, the airline holds a 23 percent share of Saudi Arabia's domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an 88 percent on-time performance rate in 2024. Proceeds from the IPO will be used to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations. The strong capacity growth of flynas aligns with Saudi Arabia's national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade.
3yon News
02-06-2025
- 3yon News
إعلان شركة نفوذ للمنتجات الغذائية عن نتائج إجتماع الجمعية العامة غير العادية التي تضمنت الموافقة على زيادة رأس مال الشركة (الاجتماع الأول)
1. The company's financial statements for the fiscal year ending on December 31, 2024, were reviewed and discussed. 2. The Board of Directors' report for the fiscal year ending on December 31, 2024, was reviewed and discussed. 3. Approval of the auditor's report for the fiscal year ending on December 31, 2024, after discussion. 4. Approval of appointing Alzoman, Alfahad & Alhajjaj professional services Chartered Accountants as the company's external auditor from among the nominated firms based on the recommendation of the Audit Committee, to examine, review, and audit the financial statements for Q2, Q3, and the annual financials of 2025, and Q1 of 2026, with a total fee of SAR 390,000. 5. Approval of allowing Board Member Mr. Faisal bin Abdullah Al-Omaiqan to engage in activities competing with the company's business. 6. Approval of authorizing the Board of Directors with the powers of the Ordinary General Assembly as stated in paragraph (1) of Article 27 of the Companies Law for a period of one year from the date of this General Assembly's approval or until the end of the term of the authorized Board, whichever comes first, in accordance with the relevant executive regulations for listed joint-stock companies. 7. Approval of discharging the members of the Board of Directors from liability for the fiscal year ending December 31, 2024. 8. Approval of the Board of Directors' recommendation to distribute cash dividends amounting to SAR 11,908,359 (eleven million, nine hundred eight thousand, three hundred fifty-nine Saudi riyals) to shareholders for the fiscal period ending December 31, 2024, at SAR 0.25 per share, representing 25% of the nominal value of the share. Eligibility shall be for shareholders holding shares at the end of the trading day on the date of the General Assembly and registered in the company's shareholders register at the Securities Depository Center (Edaa) by the end of the second trading day following the eligibility date. Dividend distribution will commence on 15-06-2025. 9. Approval of disbursing board member remuneration in the amount of SAR 990,000 for the fiscal year ending December 31, 2024. 10. Approval of disbursing Audit Committee member remuneration in the amount of SAR 164,481 for the fiscal year ending December 31, 2024. 11. Approval of business and contracts to be concluded between the company and Abdullah Ibrahim Al-Omaiqan Real Estate Co., in which Board Members Mr. Faisal Abdullah Ibrahim Al-Omaiqan and Mr. Ibrahim Abdullah Ibrahim Al-Omaiqan have an indirect interest. These involve a lease contract for administrative offices and showrooms located in Al-Nuzha district, Riyadh. The contract duration is two calendar years, with an annual rental value of SAR 1,263,708 (exclusive of VAT). The total value of transactions in 2024 was SAR 1,263,708. These contracts were executed in the ordinary course of business and under prevailing commercial terms without preferential conditions. 12. Approval of business and contracts to be concluded between the company and Mosakhan Waraq Enab Food Services Establishment, in which Board Members Mr. Faisal Abdullah Ibrahim Al-Omaiqan and Mr. Ibrahim Abdullah Ibrahim Al-Omaiqan have an indirect interest. The contract is for the sale of food products with a one-year term. The total value of transactions in 2024 amounted to SAR 597,099 (exclusive of VAT). These contracts were executed in the ordinary course of business and under prevailing commercial terms without preferential conditions. 13. Approval of business and contracts executed between the company and Al-Omaiqan Holidays and Travel, in which Board Members Mr. Faisal Abdullah Ibrahim Al-Omaiqan and Mr. Ibrahim Abdullah Ibrahim Al-Omaiqan have an indirect interest. This involves an agreement to provide ticket booking services. The total value of transactions in 2024 amounted to SAR 367,291 (exclusive of VAT). These transactions were conducted in the ordinary course of business and under prevailing commercial terms without preferential conditions. 14. Approval of the amendment to the Audit Committee Charter. 15. Approval of the amendment to the Nomination and Remuneration Committee Charter. 16. Approval of the amendment to the Policy, Standards, and Procedures of Membership in the Board of Directors and its Committees. 17. Approval of the Competitive Activities Standards. 18. Approval of the Policy on Remuneration for Board Members, Committees, and Executive Management. 19. Approval of the Board of Directors' recommendation to increase the company's capital through the issuance of bonus shares as follows: • The capital increase will be through the capitalization of SAR 48 million from retained earnings, by granting one share for every one share held. • Total increase amount: SAR 48,000,000 • Capital before increase: SAR 48,000,000 • Capital after increase: SAR 96,000,000 • Increase percentage: 100% • Number of shares before the increase: 48,000,000 shares • Number of shares after the increase: 96,000,000 shares The capital increase aims to strengthen the company's financial position, support its expansion plans, and enhance shareholder returns by growing its business and seizing opportunities in the food sector. • Number of bonus shares: 1 share for every 1 share held • The increase will be through the capitalization of SAR 48,000,000 from retained earnings. Eligibility date: Shareholders who own shares by the end of the trading day on the date of the Extraordinary General Assembly and are registered with the Securities Depository Center (Edaa) at the end of the second trading day following the eligibility date. Fractional shares: In the event of fractional shares, they will be grouped in one portfolio and sold at market price. The proceeds will be distributed to eligible shareholders based on their respective entitlements within 30 days from the date of determining the entitled shares for each shareholder. • Approval of the amendment to Article (7) of the company's Articles of Association related to capital. Page 2 الأربعاء 01 مارس 2017 11:18 مساءً Page 3
Argaam
28-05-2025
- Argaam
Future development stages to focus on asset management: ElKuwaiz
Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA), said the strength of the Saudi capital market showed a significant shift in its global development. Speaking at a panel discussion at Aseer Investment Forum on May 27, ElKuwaiz said the market is no longer viewed merely through the lens of investors, but also through the lens of entrepreneurs seeking funding. As a result, the market currently plays a dual role in both investment and financing. He added that the major leap witnessed by the capital market is evident in the remarkable increase in listings and offerings. In recent years, the number of listings in both the Main Market and Nomu reached nearly 40 and 50. Thus, the local market ranked eighth in the world in terms of market cap as well as the size of offerings and listings. He noted that the increase in listings was accompanied by diversity in sectors and corporate sizes, with 60% of listed companies in the market being small and medium-sized enterprises (SMEs). The Chairman also pointed out that this development included the diversity of investment and financing tools. "Today, we're talking about the stock market and the asset management industry, with investment funds surpassing SAR 1 trillion in assets under management (AUMS) in 2024." The debt instruments sector and the debt market are now nearly equal in size to the asset management sector. Additionally, the diversity of investor categories—including local, individual, international, and institutional investors—contributes to greater market stability, ElKuwaiz said. Saudi Arabia has the most mature stock market, and the next stages of development will focus on the asset management industry, which surpassed SAR 1 trillion, equivalent to roughly one-tenth of the local stock market cap of SAR 10 trillion. This demonstrates the significant growth potential for this sector in the coming period, whether in traditional assets such as equity and bond funds, real estate funds, or venture capital funds. The Chairman added the debt market in the Kingdom is smaller than the capital market, amounting to nearly SAR 1 trillion, compared to the equity market. However, in the past two years, the volume of financing through the debt market surpassed financing in the capital market, reflecting enormous upcoming financing opportunities.
