The Capital Market Authority  organized a seminar on transparency and disclosure in the capital markets under the theme “ Transparency and disclosure toward efficient financial markets” with the participation of executive management and senior managements from the public and private sectors, investment funds and investment companies.

 

HE Sheikh Abdullah Salim Al Salmi, Executive President of CMA delivered speech in which he said “ The conclusions of discussions and  debates would contribute to enriching the understanding of  disclosure principles, limits, timings and  methods on the part of issuer companies on the one hand and  on the other hand enhancing the role of regulators in discharging their role in maintain the stability of the markets of the region and promoting their efficiency to upgrade the work of regulators and financial markets to the aspired level that would enable them to seek the best ways to perform their duties.

 

HE added “The global financial crisis, during the few past years, have clearly revealed that there were no shortcomings or inadequacies in the principles of transparency and disclosure but  revealed poor compliance with such principles and  negligence in implementation which requires  thorough review, assessment and reminding of the actual practices, legislations and  regulations regulating the disclosure and transparency processes and the need for compliance therewith to boost investors’ and market participants’ confidence in the capital markets industry to furnish  healthy and attractive investment environment for local and foreign investments.

One of the key factors behind the global financial crisis, which impacted all of us, was the failure to comply with transparency principles. Thanks to the crisis for alarming us of the importance of attaching the needed attention to enhance our aptitudes to face the risks looming over our markets to protect market participants to ensure attainment of the desired objects in the interest of our economies.

 

 

Accordingly, regulators and all concerned parties shall endeavor, as much as they can, to promote transparency, disclosure and other corporate governance principles in line with the best practices to attain the objects of fairness, investor protection and the application of impartial policies.”

 

HE Al Salmi said “In  my opinion, despite the utmost importance of the legislations regulating disclosure and transparency processes which are adequately provided for in our jurisdiction, the  most sublime object cannot be achieved except with full conviction and deep faith,  on the part of the officers of the various organizations, in such principles and the need for inevitable implementation not out of fear of  punishment but out of   desire to attain justice which is the typical foundation for the ideal principles of corporate governance.

 

I would like to emphasis, in this occasion, on the significance of acquainting with the international practices and benefiting therefrom as well as  mutual cooperation  among regulators,  especially in the region, in the field of corporate governance in general and transparency and disclosure in particular, further to exchanging expertise and familiarizing with best international practices to create market infrastructures, regulations and directives in line with the  international practices,  the principles of IOSCO and to  enhance investors’ protection which have positive impact on the stability and efficiency of the markets of the region.”

 

 

The seminar focuses on senior managements in the public and private sectors, investment funds and companies and other concerned parties.

 

 Working papers were delivered by professional from the Sultanate and abroad on  five topics on the roles of disclosure and transparency in enhancing the efficiency of the capital market, disclosure requirements in the securities markets, the role of issuers of securities in enhancing  disclosure in the market and the requirements of regular disclosure, accounting disclosure and the role of external auditor in upgrading the level of disclosure and transparency in the market and how to enhance timely disclosure of material information.  The evening sessions tackled the realities of disclosure in the Middle East and the challenges facing the  region to improve the standards governing disclosure processes in addition to electronic disclosure and its role in upgrading the level of transparency in the financial markets and additional disclosure requirements for Islamic financing and Takaful companies.

 

 

The principle of disclosure is the one of the key and significant principles concerning the stakeholders in financial markets, investment institutions, investment fund and banks as well as managements of public companies and  regulators as compliance with disclosure and transparency standards would upgrade the efficiency of financial markets and boosts investors confidence.

 

The seminar is step toward promoting awareness of disclosure and transparency in the financial markets and to acquaint with the best international and local practices for the regulation of disclosure by public joint stock companies and to familiarize with the leading practices in view of the challenges of globalization, economic openness and the requirements of market economy and global financial crisis which require continuous work to review and evaluate the practices and regulations  regulating disclosure and transparency to enhance the  confidence of market participants.