WHAT IS THE CMA OF OMAN?
The Capital Market Authority of Oman (CMA) is the local financial regulatory authority responsible for capital markets locally. 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, and reinforce transparency and disclosure standards in all listed companies, and moreover to protect the investors and dealers from illegal acts in the market.
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 pertaining to 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.
Muscat Securities Market
The Muscat Securities Market (MSM) is the Stock Exchange of Oman. It was established by the Royal Decree (53/88) on the 21st of 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.
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:
The resolution of the board of directors of the beneficiary approving the issuance of the Sukuk.
Certified copy of the articles of association of the company according to the latest amendment.
Draft offering notice
Copy of constitutive documents of the beneficiary and special purpose vehicle.
Copy of the resolution for the appointment of Sukukholders agent, and a copy of the contract concluded with the agent.
Certificate by the Sharia Supervisory Board confirming compliance with Sharia precepts.
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).