Oman’s stock market watchdog Capital Market Authority (CMA) is in the process of drafting a new securities law, in an attempt to protect the interest of investors.

The proposed securities law will allow more freedom to agencies like Muscat Securities Market and Muscat Clearing and Depository Company and clearly define powers and procedures for investigations for enforcing securities laws and regulations, according to a press release. 

The draft law is already circulated among all parties, including listed firms, investment funds and brokerage firms, for their feedback. The companies have given time up to February 9 for submitting their views and feedback.

Khalfan Mohammed Al Sharji, director general of Capital Market Institution at the CMA, said that a developing economy like Oman needs a vibrant securities market to attract the much-needed capital and manage various risks the capital market faces from time to time.

Facilitate growth

“The new securities law is designed to encourage dynamic growth of the industry by providing a robust model in line with international best practices recommended by the International Organisation of Securities Commissions (IOSCO),” he added, while addressing an inter-active session on the draft law.

Preliminary review

A preliminary review of the draft has already been completed by IOSCO officials and received positive feedback. All necessary adjustments proposed by them have already been incorporated, he added.

Al Sharji said that the rapid development in the securities industry across the world prompted changes in present law to address many regulatory issues in line with international standards.

He further added that the stated aim of the new draft legislation is to create a new structure for the securities industry in Oman through detailed regulations in line with the international standards for the regulation of securities markets to maintain high standards of integrity and creating regulatory structure.

The interactive session was presided by Sheikh Abdullah Salim Al Salmi, executive president of CMA and attended by several other senior officials from the regulatory authority.

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 anopen discussion and the participants said the new draft contained new concepts which would contribute to upgrading the performance of the stock market.

The meeting reached an understanding on various issues relating to review the certain clauses in the draft and allowing the law firm to present their views before mid- February.

Source :Times Of Oman