The Capital Market Authority (CMA) announces compensation for more than 20,000 investors affected by the violations committed in the shares of Al Kathiri Holding Co. and Anaam International Holding Group. These violations were carried out by a number of violators, against whom a final decision was issued by the Appeal Committee for Resolution of Securities Disputes (ACRSD), published on the websites of the CMA and the General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) on December 14, 2023, which obligated them to pay SAR 292.8 million for the illegal gains realized as a result of those violations, following the penal lawsuit filed by the Public Prosecution and referred by the Capital Market Authority.
The compensations were deposited into the accounts of the affected investors through the Compensation Fund, which was established pursuant to a resolution of the CMA's Board in accordance with the distribution plan approved by the Committee for Resolution of Securities Disputes (CRSD) in its Decision No. 6724/L/D1/2026 of 1448H, in a manner that facilitates the compensation process and ensures that entitlements are delivered to their rightful owners promptly and with minimal burden on them.
The approved distribution plan was designed to align with the scale of the violations committed, the value of the illegal gains realized from those violations, and the extent of harm suffered by investors who traded the shares of both companies during the violation period. In some cases, compensation amounts reached more than SAR 6 million.
Pursuant to Article (59) of the Capital Market Law, the CMA has the power to regulate procedures for compensating persons affected by violations, and to consider the suitability of establishing dedicated compensation funds sourced from the recovered illegal gains. This led to the establishment of this fund to compensate eligible beneficiaries in accordance with the approved distribution plan, in line with the necessary rules, procedures, and legal framework designed to enhance the efficiency of such funds.
In the context of enhancing compensation opportunities, the CMA has carefully studied international best practices applied in capital markets and adopted those most suitable to the nature of the Saudi capital market, thereby contributing to raising the efficiency of compensation mechanisms, strengthening investor confidence in the market, and protecting their rights. These efforts form part of a package of strategic initiatives aimed at completing the building of a more advanced, competitive, and effective financial ecosystem that better upholds justice. This fund is considered the fourth of its kind to compensate those affected by violations committed in the capital market within less than 12 months, following the first fund announced in July 2025.
Compensation funds serve as a complement to the mechanisms that facilitate compensation for investors affected by violations committed in the capital market. The CMA establishes these funds by determining their suitability whenever the facts and circumstances of a case demonstrate that actual harm has occurred as a result of those violations, and when the CMA deems that establishing such a fund would be more effective and practical than other available means of compensation.
