Title: Announcement regarding issuance of Disciplinary Board Resolution No. (85/2024 Disciplinary Board) (10/2024 Complaint) and imposition of a fine against: Massaleh Investments Company for violating the Rules of Dealing in Securities.

Announcement regarding issuance of Disciplinary Board Resolution No. (85/2024 Disciplinary Board) (10/2024 Complaint) and imposition of a fine against: Massaleh Investments Company for violating the Rules of Dealing in Securities.

For the following reasons:
The complainant submitted a complaint against the defendant company stating that the latter has sold unsalable shares during a subscription conducted without issuance of an official subscription prospectus that proves the subscriber’s rights, then it signed a contract of selling the shares in a price different from the subscription price without transferring their ownership, claiming that they were untransferable. The Company has also kept those shares and managed them since 2005 without the existence of a management contract. The complainant added that the defendant refused to enable him to transfer or sell those shares similar to other investors, and it refrained from providing him with quarterly reports and information in the absence of documents that support his rights in its records, which led to losing his rights and resulting in continuous financial loss over 14 years since 2004. As such, the defendant has violated the provisions of Articles (5-31) and (5-44) of Module Eleven, and Articles (2-3), (3-1), (5-3), (5-4), (5-5), (7-2), and (7-3) of Module Seven of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities their amendments. 

The Resolution included the infliction of the following penalty: -
“Levying a fine on the defendant Massaleh Investments Company in an amount of KWD 5,000 (five thousand Dinars) for the attributed violation.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.