CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (59/2022 Disciplinary Board) (214/2021 Authority) and imposition of a fine against each of: First- Asaad Abdulaziz Al-Sanad (Trading account No. 2013001), Second- Mohammad Salah Ahmad Al-Ayoub as authorized to manage the trading account of Gulf Investment House (Trading account No. 78899), Third- Meshari Bader Ahmad Al-Muthen as Managing Director of Afkar Holding Company authorized to manage its account- (Trading account No.2052332) for violating the rules of Enforcement of the Law and Listing
Announcement regarding issuance of Disciplinary Board Resolution No. (59/2022 Disciplinary Board) (214/2021 Authority) and imposition of a fine against each of:
First- Asaad Abdulaziz Al-Sanad (Trading account No. 2013001).
Second- Mohammad Salah Ahmad Al-Ayoub as authorized to manage the trading account of Gulf Investment House (Trading account No. 78899).
Third- Meshari Bader Ahmad Al-Muthen as Managing Director of Afkar Holding Company authorized to manage its account- (Trading account No.2052332).
For violating the rules of Enforcement of the Law and Listing
For the following reasons:
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:
First: a) Asaad Abdulaziz Al-Sanad (Trading account No. 2013001).
b) Mohammad Salah Ahmad Al-Ayoub as authorized to manage the trading account of Gulf Investment House (Trading account No. 78899).
It was proven that,
As it was proven to the Authority that, during the trading session held on 10/19/2021, they affected the trading of the shares of the United Projects for Aviation Services Company (UPAC) by creating a false and misleading suggestion, by following the approach of influencing the share order schedule by entering several purchase orders for relatively large quantities at prices lower than the prevailing price, which led to attracting the audience of traders in the market to buy the security and increase the momentum on the share, as they jointly influence the (UPAC) share order schedule by entering several purchase orders for relatively large quantities at prices lower than the prevailing price. Most of them were cancelled as soon as the first managed to sell the quantity he wanted to sell, which amounted to (137,340 shares) in the same session, and this was with the support and assistance of the trader / Asaad Abdulaziz Al-Sanad through his trading account, who has a relationship with the Chairman of the Board of Directors of Gulf Investment House, Mr. Abdulaziz Asaad Abdulaziz Al-Sanad (Mr. Asaad’s father) as he followed the same approach of influencing the share’s order schedule by entering several purchase orders for relatively large quantities at prices lower than the prevailing price for 450,000 shares on more than one price level, and most of those orders matched with the Gulf Investment House Company’s account executing some sale transactions, and the fate of all purchase orders entered by the trader was cancellation and none of them were executed, which resulted in the Company gaining a profit of 1,648 KD (one thousand six hundred and forty-eight Kuwaiti Dinars).
Second: - Meshari Bader Ahmad Al-Muthen as Managing Director of Afkar Holding Company authorized to manage its account- (Trading account No.2052332) due to his violation of the provision of Paragraph (C) of Item No. (1) of Article (3-5) of Module Fourteen (Market Conduct) from the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Where it was proven to the Authority that on 5/10/2021, in his capacity as Managing Director of Afkar Holding Company and authorized to manage its trading account, he gave orders that directly affected the trading of GFH Financial Group (GFH) shares by creating a false and misleading suggestion, by following the approach represented in influence on the share orders schedule by entering several purchase orders for relatively large quantities at prices lower than the prevailing price, representing 40% of the total purchase orders entered, most of them were destined to be canceled as soon as he was able to sell the quantity he wanted to sell, which amounted to (5,705,406 shares) in the same session, which confirms that the purchase orders that he entered were not intended to buy the share, but rather to attract the audience of traders in the market to buy the security from him and increase the momentum on the stock by following this misleading method, as a result of these actions, the Company gained a profit of 9,015 Kuwaiti Dinars (nine thousand and fifteen Kuwaiti Dinars).
The Resolution included the infliction of the following penalty: -
“First: Mr. Asaad Abdulaziz Al-Sanad (Trading account No. 2013001) is fined an amount of twenty thousand 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: Mohammad Salah Ahmad Al-Ayoub as authorized to manage the trading account of Gulf Investment House (Trading account No. 78899) is fined an amount of ten thousand 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.
Third: By obliging the aforementioned jointly to refund the amount (one thousand six hundred and forty-eight Kuwaiti Dinars), the value of the profit they gained.
Fourth: Meshari Bader Ahmad Al-Muthen as Managing Director of Afkar Holding Company authorized to manage its account- (Trading account No.2052332) is fined an amount of ten thousand Dinars for the attributed violation. He shall return the amount of KWD 9015 (nine thousand and fifteen Kuwaiti Dinars) the value of the profit he gained, 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.