The Muscat Securities Market (MSM, Arabic: سوق مسقط للأوراق المالية ) is the only stock exchange in Oman. It was established by the Royal Decree (53/88) issued on 21 June 1988, to regulate and control the Omani securities market and to participate, effectively, with other organizations for setting up the infrastructure of the Sultanate's financial sector.
After ten years of continuous growth, there was a need for a better functioning of the market. Thus MSM has been restructured by two Royal Decrees (80/98) and (82/98).
The Royal Decree (80/98) dated November 9, 1998, which promulgated the new Capital Market Law, provides for the establishment of two separate entities, an exchange, Muscat Securities Market (MSM), where all listed securities shall be traded, and the Capital Market Authority(CMA) - the regulatory. The exchange is a governmental entity, financially and administratively independent from the regulatory but subject to its supervision. Thus the securities industry in Oman was well established to enhance investors' confidence by developing and improving all the processes appertaining to the stock market.
As a continuing process in the development of the securities market, the MSM has developed its regulations to provide information and financial data relating to the performance of the Market and all listed companies directly to investors through a highly advanced electronic trading system. This will not only ensure transparency of dealings which is considered to be one of the main principles of fair trading, but will encourage investors to make the right investment decision at the right time.
The Market has developed its existing system of clearance and settlement, by introducing a new mechanism for ensuring stable dealings in securities, as well as providing a better environment attracting foreign investment into Oman. The former settlement mechanism was involving only three parties in the clearance and settlement: MSM, Muscat Clearing and Depository Company (S.A.O.C) and the brokers. The newly introduced settlement formula is through a settlement bank (Central Bank) with a Settlement Guarantee Fund (SGF).
SGF has been established with the contribution of all intermediary companies. It aims to guarantee continuation of settlement processes among intermediaries. Where any of the intermediaries is unable to provide the settlement amount, the SGF would transfer the deficit to the settlement bank on behalf of the intermediary and then collect the same from the intermediary. Thus the settlement would be smoothly completed.
Read more about Muscat Securities Market: Market Classification, Market Sectors, Legislative Structure, MSM-30 Index, Technology, Certification, Hours
Famous quotes containing the word market:
“To throw obstacles in the way of a complete education is like putting out the eyes; to deny the rights of property is like cutting off the hands. To refuse political equality is like robbing the ostracized of all self-respect, of credit in the market place, of recompense in the world of work, of a voice in choosing those who make and administer the law, a choice in the jury before whom they are tried, and in the judge who decides their punishment.”
—Elizabeth Cady Stanton (1815–1902)