• a) Any reference to the “Law” in these Regulations shall mean the Capital Market Law issued by Royal Decree No. M/30 dated 2/6/1424H.

• b) Without prejudice to Paragraph (c) of this Article, the expressions and terms in these Regulations shall have the meaning which they bear in the Law and in the Glossary of defined terms used in the Regulations and Rules of the Capital Market Authority, unless the context indicates otherwise.

• c) For the implementation of the provisions of these Regulations, the following expressions and terms shall have the meaning herein specified, unless the context indicates otherwise:

• 1) Appeal Committee: the Appeal Committee for Securities Disputes formed pursuant to Paragraph (i) of Article (30) of the Law.

• 2) Committee: the Committee for the Resolution of Securities Disputes formed pursuant to Paragraph (a) of Article (30) of the Law.

• 3) General Secretariat: the general secretariat of the Committees for the Resolution of Securities Disputes.

• 4) General Secretary: the general secretary of the Committees for the Resolution of Securities Disputes.

• 5) Charged Person: a person who is charged with a violation of any provision related to the public right of the provisions of the relevant laws and regulations which the Committee has jurisdiction to consider suits arising from such laws and regulations.

• 6) Circuit: any circuit of the Committee’s circuits.

• 7) Member: a regular or substitute member of the Circuit, and this term includes the Circuit’s chairman unless the context indicates otherwise.

• 8) Complaint: filing a grievance with the Authority or a request to seek a right or remove a transgression on a right.

• 9) Day: the calendar day including official holidays for the country.

• 10) Class Action Suit: a private action suit filed by a group of plaintiffs against one or more defendants, where the group of plaintiffs' suit shares the same legal basis, alleged facts, and the subject matter of the requests.

• 11) Lead Plaintiff: A person who represents Members of the Group of Plaintiffs before the Committees for the Resolution of Securities Disputes in connection with the Class Action Suit and is appointed in accordance with the provisions of Paragraph (b) of Article (61) of these Regulations.

• 12) Members of the Group of Plaintiffs: A group of persons who participate in filing a Class Action Suit.

• 13) Class Action Suits Docket: A docket for Class Action Suits established by the General Secretariat, which includes the full name of the Lead Plaintiff, the full name of each member of the Members of the Group of Plaintiffs, as well as the information required under these Regulations.

• 14) Electronic Platform: The electronic platform for proceedings before the Committees for the Resolution of Securities Disputes.

No statement of claim may be filed with the Committee without filing a complaint first with the Authority and a (90) day period has passed from its filing date, unless the Authority notifies the claimant that he may file the suit with the Committee before the end of this period.

Prior to filing a grievance suit with the Committee against decisions and actions taken by the Authority, the Exchange, the Depository Center or Clearing Center, a grievance shall be submitted first with the Authority within (60) days from the date the related decision or action has been known. The decisions and the actions shall be deemed to be known if they are served to the related person or published on the website of the Authority, the Exchange, the Depository Center or Clearing Center.

Where the Authority serves a notice refusing a grievance, or the elapse of the (90) day period set forth in Article (2) of these Regulations without a decision taken, a grievance suit may be filed with the Committee within (90) days from the date of becoming aware of the decision refusing the grievance or from the elapse of the aforementioned period without a decision taken.

A capital market institution or a listed joint stock company must, in all suits to which they are a party, be represented by a lawyer or legal representative licensed in the Kingdom, including in filing a suit or litigating it, and in the submission of any requests or memoranda to the Circuit or the Appeal Committee. No suit, litigation, requests, or memoranda submitted in violation of the provisions of this Article shall be accepted.

• a) A plaintiff shall submit an application to file a suit with the Committee by submitting a statement of claim to the General Secretariat, and the applicant shall be notified in writing of the application number and its date. The statement of claim must satisfy the following requirements:

  • 1) That the statement of claim includes the information specified in Annex (1) of these Regulations.

  • 2) That the suit parties and its subject matter in the statement of claim are the same parties and subject matter as in the Complaint filed with the Authority.

• b) The plaintiff may not combine in the statement of claim several unrelated requests, even if they are included in single notification issued by the Authority regarding the permissibility of filing with the Committee.

• c) The General Secretariat shall notify the plaintiff if any of the requirements stipulated in Paragraph (a) of this Article are not met, and the plaintiff must satisfy these requirements within (10) days from the date of the notification; otherwise, the application to file the statement of claim shall be deemed as if it had not been filed.

The General Secretary shall file the suit by registering the statement of claim that the General Secretariat received within a period not exceeding (3) days from the date of its receipt -if it met the requirements stipulated in Paragraph (a) of Article (6) of these Regulations- with a serial number in a specific docket prepared for this purpose, and the plaintiff shall be notified in writing of the filing number and its date. The General Secretary shall also organize, arrange, number, and retain the suits record.

• a) The Circuit shall commence consideration of the suit within a period not exceeding (14) days from the date of filing the suit with the Committee by serving the statement of claim to the defendant and requesting a reply.

• b) If the Circuit deems that the statement of claim is not written in a manner necessary for consideration and adjudication of the suit, the Circuit shall ask the plaintiff for what is necessary to write his suit in accordance with the provisions of these Regulations. If the plaintiff is unable or unwilling to do so, the Circuit shall issue a decision to dismiss the suit.