08 September 2016
Muscat: Oman's Capital Market Authority (CMA)
has warned four brokerage and investment companies against violation of clearing and settlement regulation.
The cautionary notice was issued to Global Securities, Horizon Securities and Al Madinah Investment. A fourth warning was given to Al Maha Financial Services for failing to pay debts of their clients in violation of clearing and settlement regulation.
"The buyer member shall not accept post-dated cheques drawn by the clients or endorsed by them or accept any other guarantees as payment for the executed transactions. He may not carry out financing operations in favour of the clients unless licensed to do so," according to the clause.
The move was made as part of CMA's regulatory measures to protect the investors and for the interest of the national economy.
Article 63 of the Capital Market
Law provides for penalties for breaching the provisions of the law, which include cautioning, warning and financial penalty not exceeding OMR100,000 and suspension from work for specific term as well as final deregistration.
© Times of Oman 2016