CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (51/2022 Disciplinary Board) (195/2021 Authority) and imposition of a fine against each of: 1- Bader Mahmoud Mohammad Hussain (Trading account No. 583882), 2- Khalifa Mohammad Khalifa Al-Shlash (Trading account No. 5076535) for violating the rules of Market Conduct
Announcement regarding issuance of Disciplinary Board Resolution No. (51/2022 Disciplinary Board) (195/2021 Authority) and imposition of a fine against each of: 1- Bader Mahmoud Mohammad Hussain (Trading account No. 583882), 2- Khalifa Mohammad Khalifa Al-Shlash (Trading account No. 5076535) for violating the rules of Market Conduct.
For the following reasons:
Provision of Paragraph (c) of Item (1) and Item (9) of Article (3-5) of Module Fourteen (Market Conduct) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven that, during the period between 10/10/2021 and 20/10/2021, through the trading account of Mr. Bader Mahmoud Mohammad Hussain No. (583882) and the trading account of Mr. Khalifa Mohammad Khalifa Al-Shlash No. (5076535) they affected the price of the share of Marakez Real Estate Trade Centers Company (Marakez) through the execution of several transactions that were crossed in a coordinated manner, resulting in the artificial and notable increase of the stock price throughout the crossing arrangement period.
The trades and deals mentioned above that were crossed in several sessions, frequently and with simple time differences have contributed in attracting the traders to purchase the share and increase its momentum, which shows that they deliberately created fake trading on the mentioned share and conveyed a misleading image on the nature of activity of the shares of Marakez Real Estate Trade Centers Company for the period from 10/10/2021 to 20/10/2021.
This has enabled them to sell the quantity of shares intended to be sold in prices above the prevailing price of the share through such misleading trades, which resulted in Mr. Bader Mahmoud Mohammad Hussain’s achievement of a profit of KWD 212 (two hundred and twelve Kuwaiti Dinars) from such trades.
Furthermore, Mr. Khalifa Mohammad Khalifa Al-Shlash achieved a profit of KWD 13,306 (Thirteen Thousand, three hundred and six Kuwaiti Dinars).
The Resolution included the infliction of the following penalty: -
“First: Mr. Bader Mahmoud Mohammad Hussain (Trading account No. 583882) is fined an amount of fifty thousand Dinars for the attributed violation. He shall return the amount of KWD 212 (two hundred and twelve Kuwaiti Dinars), and he is prohibited from dealing on any security in the Exchange for a period of one year from the issuance date of the Resolution.
Second: Mr. Khalifa Mohammad Khalifa Al-Shlash (Trading account No. 5076535) is fined an amount of fifty thousand Dinars for the attributed violation. He shall return the amount of KWD 13.306 (Thirteen Thousand, three hundred and six Kuwaiti Dinars), and he is prohibited from dealing on any security in the Exchange for a period of one year from the issuance date 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.