CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (11/2022 Disciplinary Board) (172/2021 Authority) and the imposition of a fine against: Ahmed Rajab Khudair Saleh for violating the rules of Market Conduct.
Announcement regarding issuance of Disciplinary Board Resolution No. (11/2022 Disciplinary Board) (172/2021 Authority) and the imposition of a fine against: Ahmed Rajab Khudair Saleh for violating the rules of Market Conduct.
For the following reasons:
Violating the provision of paragraph ( C ) of Item (1) of Article (3-5) of Module Fourteen (Market Conduct) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the Authority, by observing the trading that was conducted on the shares of a company in the two trading sessions on 3/10/2021 and 4/10/2021, that he, through the trading account, followed the approach represented in affecting the stock’s order schedule, according to the following:
• On 3/10/2021: He executed intensive buying deals in his favour, since the beginning of the session, as these trades were equivalent to 55% of the total trading on the stock in this session, then the approach, after the completion of the purchase, shifted to selling a quantity of his shares, taking advantage of the thrust that he made in this session, as it was found that there were purchase orders in his favour, less than the prevailing price in the market, which contributed to increasing the positive impression on the stock.
• On 4/10/2021: Through the trading account, he followed the approach of influencing the stock's orders schedule by entering several split purchase orders for relatively large quantities, as these orders represented at some times of the trading session 67% of the total purchase orders entered on the shares of a company at different prices and less than the prevailing price and at close times and does not aim to implement it, but rather aims to convey a false image with the presence of real buying power on the share, as the total entered purchase orders amounted to 25,687,000 shares (prices ranged from 19.5 to 24.4 fils per share) and then sold to public traders in conjunction with canceling all existing purchase orders with a short time difference on many occasions between the time of entering and canceling the orders, which led to attracting public traders in the market to buy the security from him and increase the thrust on the stock, as buy and sell orders executed with those canceled on this day.
The Resolution included the infliction of the following penalty: -
“Ahmed Rajab Khudair Saleh is fined an amount of fifty thousand Dinars for the attributed violation and forcing him to return the amount (twenty-five thousand Dinars) and suspend dealing in any security in the securities exchange for three years from the date of the issuance of the 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 rules 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.