A hefty fine of 11.1 million riyals was imposed on two men who urged users on social media platform X to invest in shares of certain companies.
The two violators, Mohammed bin Nawaf bin Mohammed Al-Harbi and Nawaf bin Mohammed bin Jumaan Al-Sukhaibar Al-Harbi with X accounts (@mnawafms) and (@nawafmsz), were convicted under the Capital Market Law by the Securities Disputes Appeal Committee.
The duo were sharing opinions on the networking site with the aim of influencing the share prices of 17 companies listed on the Saudi Stock Exchange, and urging others to buy or sell shares in those companies through their accounts.
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The authority imposed a number of penalties on them. A fine of 500,000 riyals was imposed on the first convict, Mohammed bin Nawaf bin Mohammed Al-Harbi, and he has been prevented from trading or buying in the Saudi financial market, whether directly or indirectly, with the exception of trading through investment funds at financial market institutions for a period of two years. He has also been prevented from working in entities subject to the supervision of the Capital Market Authority for a period of two years.
Meanwhile, the committee imposed a fine of 10.6 million riyals on the second convict, Nawaf bin Mohammed bin Jumaan Al-Sukhaibar Al-Harbi, and has prevented him from trading or buying in the Saudi financial market, whether directly or indirectly, with the exception of trading through investment funds at financial market institutions for a period of five years. He has also been prevented from working in entities subject to the supervision of the Capital Market Authority for a period of five years.
The identity of the violators was announced to the public after the violations and penalties were proven and the final decision was issued by the Securities Disputes Appeal Committee.
They both were urging people to invest in the following companies:
Bank Aljazira (Aljazira), Sadr Logistics Services Company (Sadr), and Methanol Chemicals (Chemanol), Saudi Arabian Refineries Company (Refineries), National Gypsum Company (Gypsco), Wafra Industrial and Development Company (Wafra), Saudi Advanced Industries Company (Advanced), National Glass Industries Company (Zujaj), Packaging Materials Manufacturing Company (Fibco), Saudi Clay Pipes Company (Clay), Umm Al-Qura Cement Company (Umm Al-Qura Cement), Thobe Al-Aseel Company (Al-Aseel), Baazeem Trading Company (Baazeem), Tabuk Agricultural Development Company (Tabuk Agricultural), Eastern Development Company (Eastern Development), Al-Jouf Agricultural Company (Al-Jouf), and Bahr Al-Arab Information Systems Company (Bahar Al-Arab).
The authority said it would continue monitoring any violating behaviours, arrest perpetrators, and complete the necessary procedures to impose deterrent penalties against them.