01 Aug 2009, David Benyon, Operational Risk & Regulation
RIYADH - Saudi Arabian regulator the Capital Market Authority (CMA) has issued some rare insider trading fines against two investors for market abuse within the region's largest exchange. The two men, Mohammed bin Ibrahim al-Issa and Mohammed bin Salah al-Rushudi, were reportedly each fined 100,000 riyals ($26,700), according to the Financial Times. The regulator accused al-Issa of abusing his position on the board of Saudi Hotels to obtain privileged information that he used to trade the firm's shares. He was banned from working for a listed company for three years as well as having to pay back 3.37 million riyals ($9 million) in ill-gotten trading profits. Al-Rushudi allegedly used confidential information obtained in his role as chairman of the Al Gassim Agricultural Company to illegally trade its shares. Both men had reportedly denied the charges.
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