FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 65
MUSCAT SECURITIES MARKET
LETTER FROM THE DIRECTOR GENERAL
The MSM is now working toward setting
up an efficient settlement system for
securities transactions.
During 2002 the Muscat Securities Market
(MSM) witnessed significant achievements,
which positively affected Exchange
transactions and activities of the MSM in
general.
Various legal reforms have been made,
particularly the amendments in the
Commercial Companies Law. However, as
part of its continuing efforts to strengthen the
legal framework within which the commercial
companies operate in Oman, and in order to
protect the interests of various shareholders,
the government has amended the Commercial
Companies Law (CCL) effective 1 October
2002.
The MSM is now working toward setting up
an efficient settlement system for securities
transactions. To this effect a third party
settlement bank, for instance, is proposed to
be involved in the settlement cycle to net and
settle all trading transactions.
trading system applications and consequently
support true fault tolerance with automatic
fail over capabilities, disaster recovery which
guarantees system availability, additional
processing power, and scalability.
We hope that during 2003 we will continue
to implement an active policy for attracting
domestic and foreign investors.
The MSM has recently improved its computer
systems to enhance the performance of Ahmed Salih Al-Marhoon
Registration of Securities Company (SAOC) as
a private company jointly owned by the
brokerage companies and the MSM. The government of Oman has adopted
comprehensive reformatory polices for
enhancing the transparency and flow of foreign
investments.
Director General
HISTORY AND DEVELOPMENT
The Muscat Securities Market (MSM) was
established by Royal Decree No. 53/88 issued
on 21 June 1988. In 1998 the Capital Market
Law was adopted, thus restructuring the MSM
into two separate entities: the Capital Market
Authority (the regulatory body) and the Muscat
Securities Market (the Exchange).
Royal Decree No. 82/98 was issued in November
1998 establishing the Muscat Depository &
The MSM is owned by the government of the
Sultanate of Oman, but has its own financial and
administrative rules and regulations.
The MSM is governed by an independent board
of directors, consisting of seven members: four
elected and three appointed.
FUTURE OUTLOOK
The MSM outlook for 2003 is as follows:
establishment of a brokers’ association;
enhancement of the features and efficiency of
an electronic trading system;
redesign of the market website to be more
dynamic;
development of an integrated clearing and
settlement system;
enhancement of the principles of disclosure and
transparency; and
updating of the listing regulations with the goal
of ensuring greater quality in listed companies.