Members News

Home / News

Enforcement Actions

Active Members

The Securities and Commodities Authority (SCA) initiated an investigation into a number of suspected violations by some public joint stock companies listed on the UAE financial markets, most notably failure to present financial statements in a true and fair manner and failure to comply with the governance and institutional discipline standards. 

Among the violations being investigated in response to requests and complaints by shareholders are those attributed to another listed company. They involve practices committed by a number of its board members that, according to the shareholders, inflicted damage to them and to the company.
Depending on what the investigations and inspections reveal, SCA will take the necessary legal proceedings in accordance with Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market, Federal Law No. (2) of 2015 concerning Commercial Companies, and the implementing decisions.
As to licensed companies, SCA has concluded an investigation with a brokerage company and is considering to suspend its operations and to impose a number of financial penalties for proved violations including failure to segregate client accounts from the accounts belonging to the company and failure to comply with the international accounting standards.
It is worth mentioning that SCA receives complaints and suggestions from investors and stakeholders via multiple channels, including its Contact Us page, the National Customer Relation Management Gateway, and the live chat feature offered on its website.


The Securities and Commodities Authority (SCA) is keeping an eye on tweets which include views not in line with its regulations or with the Commercial Companies Law as they tend to mislead investors and the general public. It has been observed that some posts are detrimental to the integrity and standing of some government bodies. Accordingly, SCA will investigate violations and will take the necessary legal actions against users of these accounts. 

As part of the supervisory role it plays to ensure sound transactions and to protect investors, the Securities and Commodities Authority (SCA) referred a listed public joint stock company to the public prosecution on suspicion of acquisitions involving errors that lead to inflated acquisition value. The referral was made following SCA’s investigation in the acquisitions and deals concluded by the company. 

The CMA Board imposed a penalty of SR 10,000 (Ten Thousand Saudi Riyals) on a number of companies, due to the contravention of the provisions set forth in Article (101) and (224) of the Companies Law, since these companies have not formed non-executive director audit committees by a resolution of the Ordinary General Assembly, during the specified period granted to the companies.



The General Secretariat of Committees for Resolution of Securities Disputes announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' resolution dated 25/07/1440 H, corresponding to 01/04/2019 G.
For further announcement's details, kindly visit the official website of General Secretariat of the Committees for Resolutions of Securities Disputes, via the following link:
The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes, decision No. (1684/L.S/2019) of 1440 H. dated 25/07/1440 H., corresponding to 01/04/2019G, on the suit filed by the Public Prosecution against: Majed bin Humaid bin Bakheet Aluhaibi.
The ACRSD decision text concluded with the conviction of the abovementioned inpidual for violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations, when trading in shares of the following companies:
(Saudia Dairy and Foodstuff Co., Jabal Omar Development Co., and Wataniya Insurance Co.) during the period from 09/12/2013G to 26/12/2013G.
Such acts and practices constituted manipulation and fraud, and created a misleading and incorrect impression regarding the security of the abovementioned companies.
The decision of the ACRSD concluded with the imposition of a number of sanctions upon the convicted inpidual, as per the following details:
1. Imposing a fine on him amounting (180,000) One Hundred Eighty Thousand Riyals for these violations.
2. Obliging him to pay (151,607.75) One Hundred Fifty One Thousand, Six Hundred Seven Saudi Riyals and Seventy Five Halalas to the Capital Market Authority's account, for the illegal gains resulted from these violations.
3. Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.
4. Prohibiting him from working in companies listed on the Exchange for a period of one year.
Any person affected by these acts may file a compensation suit to the Committee as per Article 57 of the Capital Market Law, provided that such suit is preceded by a complaint filed with the Authority.


Following the announcement of the Capital Market Authority published on its website on 28/06/1438 H. corresponding to 27/03/2017 G., which included the issuance of CMA Board resolution to impose a fine of (50,000) Fifty Thousand Saudi Riyals on Mouwasat Medical Services Co. due to its violation of paragraph (f) of Article (213) of the Companies Law. The company prevented a shareholder from exercising voting rights associated with his shares in Mouwasat Medical Services Co., at the Ordinary General Assembly Meeting on 27/03/1438 H. corresponding to 26/12/2016 G(to review the announcement click here). The Capital Market Authority would like to announces that the Appeal Committee for the Resolution of Securities Disputes has issued its final decision on 12/09/1440 H. corresponding to 17/5/2019 G., on the lawsuit filed by Mouwasat Medical Services Co. against the Capital Market Authority. The verdict concluded with upholding the decision issued by the Committee for the Resolution of Securities Disputes, to revoke the abovementioned CMA Board decision. 

Proceeding from the Capital Market Authority's (CMA) responsibilities to protect the market from unfair and unsound practices involving cheating, fraud and manipulation. In addition, to ensure fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, the CMA would like to inform the investors and participants in the capital market that a CMA Board resolution was issued to refer a suspicion of a violation to the Public Prosecution. (5) investors were suspected of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations while trading the shares of one of the listed companies on the Saudi Stock Exchange.

The Capital Market Authority insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts. Whoever is affected by these acts can file a suit for compensation to the committee as per Article 57 of the Capital Market Law. This must be proceeded by a complaint filed to the CMA.


In view of the failure of a number of companies to meet the requirements of financial disclosure and to provide the Commission with financial statements in the first quarter in 2017, therefore, the Commission decided to suspend trading at Iraqi stock exchange.


The Board of Directors of the Capital Market Authority has decided to prevent Global Trust Financial Services LLC and Celebrity National Financial Services SOAC from practicing the licensed activities for three months until adjusting their situations as from March 3, 2019 pursuant to Article 31(b) of the Capital Market Law. Where the prevention term lapse without the companies adjusting their situations their licenses will be revoked pursuant to Article 30 of the Capital Market Law.
The CMA insisted on the importance of complying with the provisions of the Unitholders’ Assembly stipulated in article (2-35) of Module Thirteen of the Executive Bylaws of Law No. (7) of 2010 and their amendments, when funds unitholders’ assembly under liquidation is held.
Furthermore, Funds Managers Subject to the Provisions of Module Thirteen are required to comply with the provision of article (2-37) of Chapter Two (Funds) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. (7) of 2010 and their amendments and the compliance with all requirements stipulated in the Bylaws regarding liquidation. 

Subscribe With Us

Subscribe to our newsletter