The Saudi bourse regulator said on Monday it has imposed a 50,000 riyal ($13,333) fine on the Saudi Indian Company for Co-operative Insurance for violating disclosure regulations.
“The company obtained a licence… to operate in the insurance sector on July 9 and did not disclose the information until after the market closed on July 12,” the Capital Market Authority (CMA) said in a statement.
The company’s stock rose by almost the maximum 10 percent limit on July 9, which coincided with the last trading day before a two-day weekend, and fell by almost as much in the following session on July 12.
Analysts say poor corporate governance by several listed firms is among the reasons behind sharp price fluctuations on the Saudi market.
Like others in the Gulf Arab region, Saudi Arabia’s stock exchange has been tainted by allegations of insider trading and manipulation of stock prices, and CMA has slapped hefty fines on many investors found guilty of manipulation. (Reuters)
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