By: Kabeer Yousuf
MUSCAT: Local companies must be keen on stability and follow regulations to enhance the confidence of investors and stakeholders and reduce the risks which may rise as a result of legislative changes, urged Abdullah bin Salim al Salmi, Executive President of Capital Market Authority (CMA).
Speaking to the media on the sidelines of the launch of amended version of Code of Corporate Governance for Public Companies at the Muscat Securities Market, Al Salmi said that the laws are developed to serve people and organise their business affairs on a regular basis.
What we basically need to do is to attract more investments to the country and build investor confidence and our companies must be keen on stability and follow regulations to enhance investor confidence”, he said. The amended guidelines to certain provisions of the Capital Market Law in reference to the Royal Decree No 59/2014, are based on the Basic Law of the State promulgated by Royal Decree No 101/96 and Capital Market Law Promulgated by Royal Decree No 80/98.
“The laws are developed to serve people and organise their affairs so they are subject to review and are evaluated from time to time in tune with changes and developments in the business environment, and also to accommodate the developments which occur in areas regulated by these laws in local, regional and global arenas”. Accordingly, no person, severally or jointly with others, can purchase or own 25 per cent or more of the shares of a public joint stock company, besides many other clauses and articles which govern the overall structure and transactions of the public joint stock companies.
“To reach this goal and to give more flexibility to legislative framework, it has been directed to make the body more open and to review it from time to time depending on the circumstances and developments in the global market,” he further said.
Article 13 of the amendment law stipulates that the accounts of the market shall be audited by an auditor licensed to operate in the country to be selected and their fee to be specified by the BoD of the market after approval of the BoD of the authority.
The amendments gives further rights and reposes more duties on the authority. Accordingly, the authority can carry out investigations as it considers expedient in the event of any infringement to the provisions of this law and the regulations and directives issued thereunder or the provisions of the securities laws of any foreign jurisdiction, upon request by the foreign jurisdiction and shall have the power to inspect and examine registers, books and communication, and to examine the transaction made by the infringing person whether carried out personally or by an agent. It may also investigate in any transaction by the infringing person with any person pertaining to the subject matter of the investigation
Seek assistance of the competent authorities in the Sultanate of Oman to compel the infringing person or the person under investigation to attend before the competent entity at the Authority or compel it to produce documents or records pertaining to the matter of investigation.
SOURCE: OMAN DAILY OBSERVER