The Chairman of the Board of Directors of the Capital Market Authority has approved a number of amendments to the Clearance and Settlement Regulation vide  Decision No.  1/2003 published in volume 1002 of the Official Gazette to  stimulate the trading activity in MSM and to encourage the investors.

The amendments included  revision of the fees MCDC charges on GDR and EDR transfers  and the fees for the transactions of the third markets exempted from trading on MSM.

The salient features of the amendments includes  reduction of the transaction change fees  from RO 20  to RO 10 provided they shall not exceed RO 200, in addition to reducing the fees MCDC charges for suspended transaction from the member causing suspension from RO 10 to RO 5 at a maximum of RO  500 for each security.

Transfer commission between accounts of the same person was amended to 0.0001 (one in ten thousand) of the market value of the security and shall not be less than RO 2 and not more than RO 50 for each transaction. The commission for internal transfer became 0.0003 (Three in ten thousand rials)  of the market value of the security and shall not exceed RO 50 for each transaction.

The commission for international deposit certificates became 0.00025 (two and half in ten thousand rials) of the market value of the security to be charged on the applicant provided it is not less than RO 10 and not more than RO 500 for each transaction.

The commission for transfer between custodians became 0.0001 (one in ten thousand rials) of the market value of the security to be charged on the applicant provided it shall not be less than RO 10 and maximum Ro 50 for each transaction. Such transfers are restricted to the transfer of ownership of securities among the registered accounts under custodian and personal name and the transfers among custodians provided the custodian is licenses by CMA.

The amendments included reduction of the commission on division of jointly owned  securities to  0.0003 (three in ten thousand rials) of the market value of the security to be charged on the applicant provided it shall not be less than RO 2 and more than RO 50 for each transaction.

Transfer commission pertaining to correction of subscription errors and transfer resulting from mergers were reduced to 0.0001 (one in ten thousand rials) at a minimum of RO 10 and maximum RO 50 for each transaction while the commission for family transfers is 0.0006 (six in ten thousand ) at a minimum of RO 2 for each transaction.

The amendments included  two transfers: transfers resulting from error of merging accounts and errors in correction of securities fractions which are transfers without fees.

Clearance and settlement of securities is determination of rights and obligations resulting from trading transactions and covering positions due to such transactions and the following deduction or addition. The purpose of the process is to curb the risks of delivery and payment in the securities market between brokerage companies in addition to execution of clearance and settlement and transfer of title at specific timings.