03 May 2015
CMA Board: 15 days for disclosure of initial annual and quarterly statements
MSM best GCC market in timely disclosure of issuers
Al Salmi: Compliance with disclosure enhances market efficiency
The Executive President of the Capital Market Authority revealed that the Board of Directors of the Capital Market Authority approved in its meeting on 15 April 2015 the term for disclosure of unaudited annual and quarterly initial statements through the MSM website immediately after being approved by the board of directors in not more than 15 days from the end of the quarter or the financial year. The statements are the total sales or revenues, sales costs, net expected profits after deduction of taxes and comparisons of the items with the previous financial year together with any items requested by CMA or the issuers sees to disclose which require amendments to the Executive Regulation of the Capital Market Law.
The move comes after measuring the responses of listed companies to the CMA’s circular last year and their ability to cope with the accounting technology and announce their statements in 15 days forthwith approval by the executive management in 15 days from the end of the quarter as guidance option.
HE Abdullah Al Salmi told Oman News Agency that the companies have responded to the requirements of the circular issued in May 2014 and the results were positive in the third quarter of the same year and more responses in the fourth quarter. He added 77% of the listed companies have disclosed their initial statement in record times as 90 listed companies out of 117 have disclosed making MSM the best GCC market in timely disclosure , hence the Board of Directors of the Capital Market Authority resolved it is time to amend the provisions regulating the disclosure of issuers in the Executive Regulation of the Capital Market Law.
Al Salmi added that all listed companies will be required to disclose the unaudited quarterly and annual statements forthwith their approval by the board of directors within not more than 15 days from the end of the quarter or the financial year.
He added the advancements in accounting systems enable the companies early disclosure of the initial results in not more thatn15 days from the end of the quarter or the financial year which allow the investors to obtain timely information to take informed investment decision.
HE added that CMA’s efforts to enhance disclosure and transparency have no limits and will continue pursuing method for moving toward higher standards of investor confidence through the provision of material information on the issuers of securities in a timely manner to attain fairness for all. HE asserted CMA is endeavoring to build confidence in the market for all market participants through revision of the laws and regulations regulating the capital market sector for investors ‘ protection to attain highest standards of fairness and efficiency to prevent insider trading.
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