General FAQs

1. What is the role of Capital Market in the economy?

The Capital Market provides the companies with the opportunity to obtain finance from the investors, and provides the investors with investment opportunities in addition to allowing liquidation of Securities easily (liquidity).

2. Why an independent regulatory authority was established?

The Sultanate witnessed rapid economic and financial developments the regulatory framework was unable to cope with. In view of the international developments in the regulation and supervision of capital markets, and to preserve the interests of investors and to develop the financial industry in the Sultanate  it was imperative to separate between the regulatory and executive functions to promote the regulatory role and protect investors in line with the best international laws,  practices and experience. Thus, the Capital Market Authority was established.   

3. Which entities are supervise by CMA?

CMA supervises

1) MSM
3) Public joint stock companies listed on MSM.
4) Investment funds.
5) Licensed companies operating in securities and their agents
6) Insurance companies, agents and brokers.
7) Credit rating companies.

4. What are the specific tasks of the Authority?

CMA regulates the capital market and insurance sectors through:

  • Organize, license and monitor the issue and trading of Securities.
  • License entities regulated by CMA.
  • Enforce related laws.
5. What is the difference between the Capital Market Authority and Muscat Securities Market?

The Capital Market Authority is a regulatory, oversight and  supervisory authority with a legal person empowered to practice the functions set out by the Capital Market Law No. 80/98.

6. Does CMA have a role in the rise and fall of share prices?

The main object of establishing CMA is to protect investors and participants of the capital market and to achieve fairness, efficiency and transparency of trading process by preventing market manipulation and fraud.  Shares rise and fall is subject to supply and demand only.

7. What is the difference between shares and bonds?

A share represents ownership in the company and the holder has the right to vote in the general meeting of the company and in receiving dividends

The bond is long term debt instrument to borrow from the public issued by government or municipality or company.

8. What is meant by corporate governance?

Corporate governance is a set of laws, regulation and decisions with the aim of achieving quality and excellence in the performance through efficient ways to attain the company objectives. In other words corporate governance is the systems governing the relationship between the main parties that influence the performance they include methods for strengthening the organization focusing on the relationship between the directors, employees, shareholders and stakeholders as well as regulators and the way they interact in the supervision and management of the company with integrity and accountability.

9. What money laundering and terrorist financing means?

The process of taking the proceeds of illegal activity, concealing its origin and making them appear legal.

Terrorist financing is the process of providing funds collected directly or indirectly with the purpose of carrying out terrorist activities or facilitating terrorist activities.

10. Is there an entity at CMA to receive complaints pertaining to the securities and insurance markets?

There is a department assigned to receive the complaints of policyholders. Its object is to settle the disputes between policyholder and insurers. CMA also receives the complaints pertaining to the securities market and take action against the violators of the laws and regulations.

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