24 January 2017
Muscat - The Capital Market Authority hosted a discussion on the draft new securities law last week. The event was presided over by Shaikh Abdullah Salim al Salmi, Executive President and attended by the Director General of Muscat Securities Market, the Director General of Muscat Clearing and Depository Company, the Chairman of Omani Securities Association and a number CEOs, GMs, heads of investment banking departments and compliance officers of the companies operating in the field of securities.

The session was held after the new securities law was posted on CMA’s website for public feedback last December. Participants said the new draft contained new concepts which will contribute to upgrading the performance of the stock market and stressed the importance of observing the current situation and the sizes of the companies operating in securities.

In opening remarks, Khalfan Mohammed al Sharji, Director General of Capital Market Institution, CMA, said the rapid development of the global securities industry and other changes unleashed by the recent financial crises, underscores the need for creating a robust regulatory infrastructure for capital markets.

The stated aim of the new draft, he said, is to create a radically refreshing structure for the securities industry in Oman through a high-level legal and regulatory framework. This structure not only conforms to international standards for the regulation of securities markets, but also places the accent on transparency and integrity.

Al Sharji said growing economies like Oman need a vibrant securities market to provide the necessary capital and to manage the various risks that it faces from time to time. “The new securities law is designed to encourage dynamic and innovative growth of the industry, by providing a robust model in line with the international best practices recommended by the International Organization of Securities Commissions (IOSCO). A preliminary review of the draft has already been completed by IOSCO officials and we have received highly positive feedback and necessary adjustment proposed by them has already been incorporated.”

Al Sharji explained that the key themes of the new draft are: protection of consumers of securities products and services allowing independency and flexibility to the market infrastructure institutions like Muscat Securities Market and Muscat Clearing and Depository Company, also defining clear powers and procedures for investigations and inspections and just regulatory regime for enforcement of the securities laws and regulations.

The session reached a common understanding on various issues relating to review the certain clauses in the draft and allowing the law firm to present their views during the public opinion period which ends mid- February. CMA expressed its readiness to organize small workshops to explain the law in details by the work team of the new securities law.

© Oman Daily Observer 2017