Data of the General Secretariat of the Committees for the Resolution of Securities Disputes in the Saudi stock market showed, today, Monday, an increase in the value of compensation for which compensation was issued for those affected by errors and violations related to securities disputes until the third quarter of 2021 by 128% compared to 2020, while the percentage of increase 132% during the year 2020 AD compared to the year 2019.
The General Secretariat stated, in a statement, that the total compensation during the year 2021 amounted to 214 million riyals in favor of 515 affected, compared to 93 million riyals to compensate 445 affected investors in 2020 and 40 million riyals to compensate 60 affected in 2019.
Compensations against violators of the Market Conduct Regulations and Article (49) increased during 2021, as the total compensation amounted to more than 133 million riyals, and the value of compensation in 2020 was about 17,000 riyals, while the value of compensation in 2019 amounted to about 352 thousand riyals.
While the value of compensation for the class action that was filed according to the civil right, during 2021 increased by 1538% to 40 million riyals, compared to 2020, where the value of compensation amounted to 2.5 million riyals, knowing that no decisions were issued for the class action by the Appeal Committee during 2019.
It is noteworthy that the decisions issued by the dismissal committee are appealed, discussed and studied by the appeal committee, and final decisions are issued in their regard.
It is noteworthy that the Authority’s Board issued its decision based on the Capital Market Law, which includes approving the amendment of the Regulations on Securities Disputes Resolution Procedures, by adding the chapter on the regulation of class action, which was published on its website, with the aim of facilitating litigation procedures in cases in which the plaintiff is a group A large number of persons all share the same legal issues and the alleged facts, which is commensurate with the nature of the listed joint stock companies and the size of their shareholders.
The amendment also contributes to the development of litigation mechanisms and procedures in line with international best practices, in a manner that enhances the attractiveness of the Saudi financial market and reduces the risks of investing in it, in addition to its role in reducing the time periods required to decide on issues of compensation for investors, in order to facilitate the work of the committees on the one hand and focus the efforts of investors. On the other hand.
It is worth noting that the General Secretariat of the Committees for the Resolution of Securities Disputes seeks to reach the highest degree of efficiency in the litigation procedures of the committees, in order to ensure the achievement of complete justice to raise the confidence of dealers and achieve stability in the financial market.
