Saudi bourse watchdog fines 4 companies

24 May 2010

(MENAFN) A statement issued by the Saudi bourse watchdog announced that it has fined four listed firms for violating disclosure rules, trying to polish the image of an bourse as it aims to gradually open up to foreign investors, Reuters reported.

The Capital Market Authority (CMA) has fined Zain Saudi Arabia’s chief executive with $13,333 for disclosing at a press conference the possibility of a capital hike.

The regulator also fined chief executive of Anaam International Holding Group with $13,333 for disclosing to the media information about the company’s first-quarter earnings, but the CMA did not disclose further elaboration.

Filling and Packing Materials Manufacturing and Arabian Pipes were fined respectively $53,337 and $26,668 for not disclosing on time a recommendation by their boards not to distribute any dividend for 2009, the statement said.

The Saudi stock market is gradually opening up to direct foreign ownership amid tough competition from regional bourses. Over the past two years, the Capital Market Authority (CMA) has stepped up efforts to clamp down on irregularities, even imposing one jail sentence and revoking the licenses of many brokerage firms for violations.

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