At least eight investors in Saudi Arabia have been ordered to pay fines of SAR302 million ($80.5 million) for market law violations, the Capital Market Authority (CMA) confirmed on Thursday.

The Appeal Committee for Resolution of Securities Disputes (ACRSD) has ruled that the individuals who had shares in companies listed on the Saudi Stock Exchange, violated the Capital Market Law and its implementing regulations, and made “illicit gains” in their investment portfolios, the CMA said in a statement.

The violations were related to share transactions as far back as June 2020, with some of the deals deemed speculative or manipulative. One of them also allegedly opened three portfolios belonging to minor children.

“The ACRSD issued its final decision convicting: Abdulaziz bin Abdullah bin Issa Albanyan and four of his sons; Faisal, Sultan, Abdullah and Fahad, and two of his daughters; Reem and Nouf, along with Hind bint Muhammad bin Abdulrahman bin Asaker,” the statement said.

The ruling called for the “precautionary seizure” of the investors’ assets, including bank and investment accounts, until the fines are paid.

According to the CMA, the investors were found guilty of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations.

“The violation was evidenced by the synchronicity in their trading of shares in two companies listed on the Saudi Exchange; Al Kathiri Holding Co. and Anaam International Holding Group. This included a concurrent increase in their ownership percentage and a coordinated exit from these companies' stocks at various times, primarily in the year 2020,” the CMA said.

The CMA pointed out that it will not hesitate to pursue manipulators in the capital market and that it will take the necessary legal measures to go after violators.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com