CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (30/2023 Disciplinary Board) (38/2023 Authority) and imposition of a warning against AQARAT Company for violating the Rules of Dealing in Securities
Announcement regarding issuance of Disciplinary Board Resolution No. (30/2023 Disciplinary Board) (38/2023 Authority) and imposition of a warning against AQARAT Company for violating the Rules of Dealing in Securities.
For the following reasons:
Violation of the provision of Article (14-2) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA through examining and monitoring the transactions that were executed on the share of AQARAT Company during the period from 02/10/2022 to 16/02/2023 that AQARAT Company, through its trading account (treasury shares) affected the trades of the share and repeatedly executed purchase and sale transactions on the share in a way incompatible with the authorizations of the right to sell or purchase treasury shares. Those contrasting transactions of the share (sale and purchase) that contributed to the volatility of the price of the share have led to increasing momentum on the share in an artificial form, which does not comply with the nature of transactions on the share.
The Resolution included the infliction of the following penalty: -
“Levying a warning on AQARAT Company for the attributed violation and considering not to repeat the violation in the future”.
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.