New Securities Law Discussed with Securities Firms and Market Participants

The  Capital Market Authority held on Tuesday a discussion session on the draft new securities law. The function was presided by HE Sheikh 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 opinion in December as part of CMA method in preparation and review of the laws and regulation prior to enacting in partnership with market participants.

The session witnessed rich and open discussion and the participants said the new draft contained new concepts which would 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.

Khalfan Mohammed Al Sharji, Director General of Capital Market Institution ,  CMA delivered the opening speech asserting that the rapid development in the securities industry in the global arena beside the changes in the economic science caused by the financial crises revealed the need for addressing  many regulatory issues to reach to the international standards in the regulation of the stock market to meet the requirement for creating robust regulatory infrastructure for the capital market to enhance its readiness in financing investment projects.

He added that the stated aim of the new draft is to create a radically refreshing structure for the securities industry in Oman through a high-level wire frame at the law level and detailed regulations in line with the international standards for the regulation of securities markets  to maintain high standards of integrity and  creating vigorous regulatory structure.

Al Sharji said the growing economies like Oman need a vibrant securities market to provide the needed capital  and 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 centerpieces 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 Director General of Market Institutions  concluded his speech by stating that  the readiness of the capital market is vital   to enhance its ability to enable economic projects to generate  more employment, with the size and population of Oman it could be safely argued that the securities market can be used to support economic growth and create jobs and revenues.

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.