Muscat Securities Market
The Muscat Securities Market (MSM) was
established in May 1989 under a Royal decree
that set the legal framework for the
establishment of the market as an independent
organization to regulate and Control the Omani
securities market. However, in order to
segregate the regulatory authority from the
exchange, the Market was restructured in 1999,
through the Capital Market Law that provided for
the establishment of the Capital Market
Authority (CMA) as a separate entity.
The CMA is responsible for the
supervision of both the MSM where all listed
shares are traded and the Muscat Depository
and Registration of Securities Company (MDRSC),
which is the sole provider in Oman of the
registration and transfer of ownership of
securities, as well as the safekeeping of the
MSM is divided into the Regular, Parallel and
Third Markets. The Regular Market has strict
listing requirements and companies must have a
history of profitability to be listed on it,
while the parallel
Market has easier listing requirements.
Electronic screen based trading was introduced
in the second half of 1998. This has produced
faster and more accurate share registration,
settlement, clearance and transfer functions and
has brought MSM, at par with other major stock
MSM is considered as the one of the highest
regulated markets in the region, with strict
rules and regulations laid out to check any
malpractice or insider trading. Companies are
required to conform on extensive disclosure
norms to ensure maximum transparency. Listed
companies are required to publish quarterly
financial results, prepared in accordance with
International Accounting Standards.
Trading Procedure - Muscat Securities Market
Trading in MSM is controlled through an
Electronic Trading System, based on a Unique
Shareholder Number that is allotted to each
investor. The shareholder number is obtained
from the MDRSC and requires the submission of a
form, for the first time, one-day prior to
execution. Orders are routed through authorized
brokers on the trading floor and the MSM
regulations forbid trading outside the trading
floor except for specific situations, such as
family transfers, inheritance, etc.
Certain situations shall require a deposit to be
made by the investor, but it is not required if
a custodian is involved. Trade advice is sent to
the investor, and to the custodian, upon
execution of the deal.
Settlement in MSM is T+3 and is routed through
the assigned broker.
Rules and Regulations - Muscat Securities
MSM has in place a very elaborate and stringent
set of regulations to ensure transparency and
the fairness of execution for all investors.
Primary among them are as following:
execution is based on the Unique Shareholder
Number, thus reducing the risk of misplaced
entry of orders gives priority to investor in
cutoff mechanism at 10% of previous closing
level reduces the possibility of off-base prices
for market orders
member transactions are announced upon execution
on a special news screen on the trading floor,
thus reducing price manipulation.
control over brokers on the floor to ensure best
professional conduct by brokers.
regulations aimed at preventing insider trading
impose huge fines and criminal proceedings on
persons indulging in deals based upon
require public companies to disclose any
information that could materially affect trading
of any scrip in the market.
companies are required to appoint an Internal
Auditor/Compliance Officer, reporting to the
board, in order to boost internal controls