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Muscat Securities Market


The Muscat Securities Market (MSM), Oman's premier stock exchange, plays a crucial role in the economic landscape of the Sultanate. Established on June 21, 1988, by the Royal Decree (53/88), MSM serves as a cornerstone in regulating, controlling, and enhancing Oman's securities market. Beyond its primary functions, the exchange has significantly contributed to developing the Sultanate's financial infrastructure, aligning with Oman's broader economic objectives.



Key Features and Functions


  • Regulatory Oversight: MSM operates under the supervision of the Capital Market Authority, ensuring a transparent and efficient market environment.

  • Market Segmentation: The market comprises various segments, including the Main Market, Parallel Market, Third Market, and an Over-the-Counter (OTC) Market, each catering to different types of securities and investors.

  • Technological Advancements: In line with global trends, MSM has embraced technological advancements to facilitate electronic trading and real-time market information.

  • Diverse Portfolio: The market lists a wide range of securities, including stocks, bonds, and mutual funds, offering investors a variety of investment options.



MSM's Role in Oman's Economy


MSM's impact on the Omani economy is profound. By providing a platform for capital raising and investment, it plays a pivotal role in the growth and diversification of the national economy. The market encourages public participation in the ownership of Omani companies, fostering a culture of investment and financial literacy among the population.


For those interested in exploring investment opportunities in the Middle East, the Muscat Securities Market offers a gateway into Oman's burgeoning economy. With its robust regulatory framework and diverse investment options, MSM represents a promising avenue for portfolio diversification and exposure to the Omani market.

What is the CMA?


The Capital Market Authority of Oman (CMA) is the local financial regulatory authority responsible for capital markets. The CMA is a government organization applying full financial, legal, and administrative independence.


The CMA’s functions are to regulate and develop the Omani Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law; this includes regulating the Muscat Securities Market, Oman's stock exchange. The basic objectives are to create an appropriate investment environment, boost confidence, reinforce transparency and disclosure standards in all listed companies, and moreover to protect the investors and dealers from illegal acts in the market.



CMA's Duties


  • Regulate and develop the capital market, and promote appropriate standards and techniques for all sections and entities involved in Securities Trade Operations.

  • Protect investors and the public from unfair and unsound practices involving fraud, deceit, cheating, manipulation, and inside information trading.

  • Maintain fairness, efficiency, and transparency in the transactions of securities.

  • Develop appropriate measures to reduce risks about transactions of securities.

  • Develop, regulate, and monitor the issuance of securities and under-trading transactions.

  • Regulate and monitor the activities of entities working under CMA.

  • Regulate and monitor full disclosure of information related to securities and issuers.

How to Issue Stocks in Oman?


Incorporation of any financial entity as a public joint-stock company and listing therefor shall only be after obtaining  CMA’s approval of the incorporation application and issuance of establishment decision then the process of subscription commences until the listing of the company on the Muscat Securities Market. The required documents are:


  • Letter by the founders’ committee applying for the establishment of the company.

  • A receipt indicating payment of the prescribed fees for the approval of the prospectus (five in ten thousand of the total value of the issued securities including share or unit value provided the  total amount shall not exceed  RO 25,000  and no less than  RO 2,000)

  • A Draft prospectus, draft offering notice, and draft subscription form in Arabic

  • Copy of constitutive memorandum and articles of association.

  • Bank certificate of payment of founders’  contribution

  • Economic feasibility study of the project or business plan for new projects or material expansion of existing projects.

  • The agreement between the company and underwriters

  • Copy of the agreement between the issuer of the security and the issue manager

  • Copy of the agreement between the issue manager and collection banks.

  • Copy of the report by the expert on the valuation of the shares in kind.

  • The approval of the central bank of the incorporation if the applicant is a bank or financing company.

  • Any other documents the CMA may require such as revaluation of assets as an example.



How to Issue Sukuk in Oman?


Companies may issue negotiable bonds or Sukuk in consideration of the funds it borrows under the provisions of the capital market laws and regulations. The articles of association of the company may provide for the prohibition of issuance of bonds or Sukuk or limit the company’s powers in issuance thereof.


The beneficiary desirous of issuing Sukuk shall apply to the CMA to obtain approval and attach with the application a brief statement on the Sukuk to be issued. The required documents are:


  1. The resolution of the board of directors of the beneficiary approving the issuance of the Sukuk.

  2. Certified copy of the articles of association of the company according to the latest amendment.

  3. Draft prospectus

  4. Draft offering notice

  5. Copy of constitutive documents of the beneficiary and special purpose vehicle.

  6. Copy of the resolution for the appointment of Sukukholders agent, and a copy of the contract concluded with the agent.

  7. Certificate by the Sharia Supervisory Board confirming compliance with Sharia precepts.

  8. Receipt evidencing payment of the prescribed fees for the approval of the prospectus ( five in ten thousand of the total value of the issued Sukuk provided no more than RO 2,000 and no less than RO 1,000).

A lawyer with regulations and rules

Financial regulators play a critical role in maintaining the stability and integrity of the financial system. These entities, often government or independent bodies, are tasked with overseeing financial markets and institutions, ensuring their proper functioning and safeguarding the interests of investors and consumers.

WHAT IS THE CMA OF OMAN?

The Capital Market Authority of Oman (CMA) is the local financial regulatory authority responsible for capital markets.

20.12.23

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