Securities disputes require a professional and specialized body with an accelerated performance in line with the nature of such transactions within a capital market full of variables affecting the pace of its performance. The financial activity is of a technical manifold nature and enjoys special customs that receive international recognition, making disputes thereof difficult and complex. Moreover, the echo of resolving such disputes leaves an outstanding imprint on the economic and financial stability.
Therefore, the Capital Market Law entrusted a specialized body to look into such disputes. The members of this body are specialized in the doctrine of transactions and financial markets, as well as being experts in commercial and financial matters along with securities cases. The Capital Market Law also took into account the distinctiveness of such disputes, hence obligated CRSD to review the complaint or suit within a period not exceeding 14 days from the date of filing such a complaint or suit.
In order to enable CRSD to carry out its duties in terms of disputes, Article Twenty Five, paragraph (a) of the Capital Market Law delegates CRSD all the necessary powers to investigate and settle complaints and suits, including the powers to issue subpoenas and decisions, as well as impose sanctions and order the presentation of evidences and documents. CRSD also has the right to issue a decision awarding damages and request to revert to the original status, or issue another decision as appropriate that would guarantee the rights of the aggrieved.
In addition to that, the Capital Market Law determines CRSD jurisdictions, that include reviewing claims against decisions taken and procedures adopted by CMA or the Exchange Market, what is known as Administrative Suit; considering complaints arising between investors relating to the Capital Market Law and its implementing regulations as well as CMA and the Exchange Market regulations, rules and instructions in terms of public and private actions, what is known as Civil Suit; and considering suits brought by CMA against violators of the Capital Market Law and its implementing regulations, what is known as Penal Suit.
These subject-matter jurisdictions are exercised at a broad geographical level covering all cities and governorates of the Kingdom of Saudi Arabia, thus acquiring jurisdictional competence with regard to these authorities.
The Capital Market Law authorizes CMA to prepare regulations and rules which CRSD must follow regarding complaints and suits presented to such an authorized body. According to such regulations and rules, no complaint or statement of claim may be filed with CRSD without being filed first with CMA and a 90-day period has passed from the filing date, unless CMA notifies the grievant otherwise of the permissibility of submitting the complaint or statement of claim prior to the expiration of this period.
The Capital Market Law authorizes CMA to prepare regulations and rules which CRSD must follow regarding complaints and suits presented to such an authorized body. According to such regulations and rules, no complaint or statement of claim may be filed with CRSD without being filed first with CMA and a 90-day period has passed from the filing date, unless CMA notifies the grievant otherwise of the permissibility of submitting the complaint or statement of claim prior to the expiration of this period.