The Capital Markets Authority issued Disciplinary Board Decision No. (85/2024 Disciplinary Board) (10/2024 Complaint) imposing a financial penalty against Massaleh Investments Company in the amount of KWD 5,000 (five thousand dinars) for the violation contributed to it for the following reasons:

The complainant filed a complaint against the company in which he stated that the latter sold non-transferable shares during a subscription without issuing an official prospectus confirming the rights of the subscribers and then entered a share sale contract at a price different from the subscription price without transferring ownership under the pretext of non-transferability. The company also retained and managed these shares without a management contract since 2005.

He added in his complaint that the company refused to allow him to transfer or sell them like other investors, as well as its refusal to provide him with periodic reports and information in the absence of documents proving his rights in its records, which led to the loss of his rights and continuous financial losses over 14 years since 2004.

Consequently, the accused company violated the provisions of Articles (5-31) and (5-44) of the Eleventh Book, and Articles (2-3), (3-1), (5-3), (5-4), (5-5), (7-2), and (7-3) of the Seventh Book of the Executive Regulations of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and the regulation of securities activities and their amendments.