CMA LAW: The Capital Markets Authority Announces Filing a Report with the Prosecutor General Regarding the Occurrence of a Crime

The Capital Markets Authority announces filing a report with the Prosecutor General on 16/11/2023 regarding the occurrence of the crime stipulated in Articles (118) and (119) of Law No. 7 of 2010 and its amendments. The first defendant (a listed company) purchased shares at low prices based on inside advice and information disclosed by the second defendant (one of its insiders) who holds the position of Deputy CEO of the Financial Department at the company where the transactions took place, and holds the same position at the first defendant. Accordingly, the latter bought those shares on 13/07/2023, prior to disclosure of the inside information in a single trading session, and then offered a portion of the purchased quantity in a later session, taking advantage of the prices that changed after disclosing the information. As a result, the first defendant gained a profit of KWD 800 (eight hundred Kuwaiti Dinars), and the unrealized profits of the retained shares, totaling 1,470,000 shares, were equivalent to KWD 22,050 (twenty-two thousand and fifty Kuwaiti Dinars).

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