The Capital Market Authority has cautioned Muscat Gases Company SAOG for failing to immediately disclose the information related to an error in the resolution to distribute cash dividends approved by the ordinary annual general meeting of the company held on March 28,2021 which resulted in buy and sell transactions during the period of delay.
CMA’s decision was based on Article 291 of the Executive Regulation of the Capital Market Law which obliges the issuers to immediately disclose all material information related to the company or its subsidiaries through the electronic transmission system and disclose adequately before the trading session all information occurring before the session. The Article also emphasizes that the issuer must maintain confidentiality of such information until they are disclosed to the public to allow fair opportunities to all the participants at the same time.
It is worth to note that the news related to distribution of dividends are considered material information affecting the decision making of the participants of the stock exchange. Disclosure is one of the key principles of the securities markets and standard. The CMA endeavors to guarantee timely provision of periodical and material information about the issuers of the securities and their accuracy as the disclosure through the website of the stock exchange aims to furnish fairness among the market participants to boost investor confidence and to attract foreign and domestic capital.
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