RIYADH — The Capital Market Authority (CMA) introduced on Monday that compensation has been deposited for greater than 20,000 traders affected by violations dedicated within the shares of Al Kathiri Holding Co. and Anaam Worldwide Holding Group.
The violations have been dedicated by a number of people towards whom a last resolution was issued by the Attraction Committee for Decision of Securities Disputes (ACRSD). The choice, revealed on Dec. 14, 2023, obligated the violators to pay SR292.8 million in unlawful features ensuing from the violations, following a penal lawsuit filed by the Public Prosecution and referred by the CMA.
The compensation quantities have been deposited into the accounts of affected traders by means of a devoted Compensation Fund established by a decision of the CMA Board, in accordance with a distribution plan authorized by the Committee for Decision of Securities Disputes (CRSD).
The CMA mentioned the mechanism was designed to facilitate the compensation course of and be sure that entitlements are delivered to eligible traders promptly and with minimal burden on them.
The authorized distribution plan took into consideration the size of the violations, the worth of the unlawful features realized, and the extent of injury suffered by traders who traded the shares of each firms throughout the violation interval. In some instances, compensation quantities exceeded SR6 million.
Beneath Article 59 of the Capital Market Regulation, the CMA has the authority to manage procedures for compensating individuals affected by violations and to evaluate the suitability of building devoted compensation funds financed from recovered unlawful features.
The authority mentioned the institution of the fund displays its efforts to strengthen investor safety, enhance compensation mechanisms, and improve confidence within the Saudi capital market.
The CMA added that it has reviewed worldwide greatest practices in capital markets and adopted measures suited to the Saudi market to enhance the effectivity of compensation mechanisms and safeguard investor rights.
That is the fourth compensation fund established to compensate traders affected by capital market violations inside lower than 12 months, following the primary fund introduced in July 2025.
The CMA mentioned compensation funds complement present mechanisms geared toward facilitating compensation for traders affected by market violations. It famous that such funds are established when the info of a case present that precise hurt occurred and when the authority determines {that a} fund can be more practical and sensible than different accessible compensation strategies.
