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Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (24/2021 Disciplinary Board) (12/2021 Authority)
Date Publish 01 April 2021


Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (24/2021 Disciplinary Board) (12/2021 Authority)

The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Thursday April 1, 2021 on violation No. (24/2021 Disciplinary Board) (12/2021 Authority) against: Abdul-Mohsen Shahryan Hassan Ali – in his capacity as CEO of Jiyad Holding Company.

The operative part of the Resolution resulted in the aforementioned being convicted of violating Article (5 - 32) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it has been proven to the Authority that he performed several withdrawals from the account that the Company specified for depositing subscription amounts in the capital increase of Jiyad Holding Company during the subscription period that started on October 1, 2017 and ended on October 21, 2017, and part of the deposited amounts were transferred to the benefit of parties related to the Company; each of:

Date

Withdrawan Amount (KD)

Beneficiary

#

9\10\2017

5,250,000

India Holding Company (K.S.C) Closed

1

12\10\2017

4,700,749

British United General Trading and Contracting Company W.L.L.

2

16\10\2017

1,948,026

India Holding Company (K.S.C) Closed

3

18\10\2017

5,057,627

Taiba Al Khair Holding Group Company (K.S.C.C)

4

 

It also transferred it immediately and during the subscription period to parties also related to Jiyad Holding Company, namely (Reflection International Company for General Trading and Contracting LLC, Tabat Al Kheir Holding Company KSC (closed), Al Qalam Al Arabi Educational Company KSC. (Closed), Petro Integrated Business Company) has subscribed for the same amounts by increasing the capital of Jiyad Holding Company to make those companies at the top of the list of major owners in the aforementioned Company based on these actions.

The decision included the infliction of the following penalty: -
“First: - The violator Abdul-Mohsen Shahryan Hassan Ali is fined an amount of fifty thousand dinars.

Second: Removing the violator from his position and preventing him from assuming any job registered in the listed or licensed companies in the future.

Third: - obligating him to return to the Authority an amount (17,665,452 dinars) (seventeen million six hundred and sixty-five thousand four hundred and fifty-two Kuwaiti dinars) the value of the sums that were transferred to others.

Fourth: Cancellation of the subscription shares of Reflection International Company for General Trading and Contracting, Al Qalam Al Arabi Educational Company, Petro Integrated Business Company and Taiba Al Khair Holding Group Company, in increasing the capital of Jiyad Holding Company, amounting to (16,956,402 dinars) (sixteen million nine hundred and fifty-six thousand four hundred and two dinars) provided that Jiyad Company retains the subscription amounts as it is the funds of the Company, the shareholders and the subscribers, which were recovered after they were transferred and seized in contravention of the law, with the consequences thereof.

Fifth: -
a. Obliging India Holding Group Company, in solidarity with the violator, to return to the Authority an amount (5,250,000 dinars) (five million two hundred fifty thousand dinars) and an amount (1,948,026 dinars) (one million nine hundred and forty-eight thousand and twenty-six dinars) the value of the transferred funds subject of the violation.
b. Obliging the British United General Trading and Contracting Company, in solidarity with the violator, to return to the Authority an amount (4,700,749 Kuwaiti Dinars) (four million seven hundred thousand seven hundred and forty-nine dinars) of the sums transferred to it.
C. Oblige Taiba Al Khair Holding Group Company, in solidarity with the violator, to return to the Authority an amount (5,057,627 dinars) (five million and fifty-seven thousand six hundred and twenty-seven dinars) the value of the sums transferred to it.
d. Cancellation of the violating purchase transactions through which the funds were transferred from the Jiyad Company, with the consequences thereof.

Sixth: Notifying the concerned parties of this Resolution.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice. 

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
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