Title: Announcement regarding issuance of Disciplinary Board Resolution No. (21/2025 Disciplinary Board) (37/2025 Authority) and imposition of a warning against Gulf Custody Company for Violating the rules of Dealing in Securities.

Announcement regarding issuance of Disciplinary Board Resolution No. (21/2025 Disciplinary Board) (37/2025 Authority) and imposition of a warning against Gulf Custody Company for Violating the rules of Dealing in Securities.

For the following reasons:
1) The provision of Article (10-9) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments

2) Circular No. (3) of 2022 Regarding Article (10-9) mentioned above.

It was proven to the CMA that Gulf Custody Company did not note pledging on the assets owned by a company and pledged for a creditor pledgee company in accordance with the pledge agreement sent to it, as in the financial disclosure of the execution file, and it did not notify the creditor pledgee of the attachment made to another pledgee.

It was also proven that unlisted pledged securities were sold in the determined auction and the subsequent without noting the said in the financial disclosure issued by the debtor and notifying the creditor pledgee, which constitutes violation to the mentioned Circular and Article that led to the issuance of resolution by the Execution Judge of Al-Asimah to cancel the auction occurred for the execution file for all unlisted shares thereof.

The Resolution included the infliction of the following penalty: -
"Levying a warning against Gulf Custody Company for the attributed violation with a directive to avoid repeating such 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.