The Financial Services Authority (FSA) in Oman has announced the launch of the first phase of the electronic system for issuing securities (E-IPO). This initiative aligns with the ongoing efforts towards the digitalization of services and procedures that govern the Omani capital market, aiming to facilitate and expedite transactions between the FSA and executive entities.
The E-IPO serves as the stage for submitting applications and approving issues, representing an integrated digital platform that regulates issuance and listing procedures within the Omani capital market. This system is designed to create an electronic environment that enhances market efficiency and accelerates operations. The development of this system was a collaborative effort between the National Program for Financial Sustainability and Financial Sector Development “Estidama” and Muscat Clearing and Depository Company (MCD).
Enhancing transparency in financial transactions
The electronic system for issuing securities will significantly reduce the time and effort necessary to complete issuance procedures, ensuring a smooth flow of information among all stakeholders. This improvement directly enhances transparency in financial transactions, which is a critical aspect of maintaining trust in the financial system.
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Procedures within first phase of E-IPO
The initial phase of the electronic issuance system comprises three fundamental procedures, beginning with the submission of issuance applications. This involves the collection and analysis of financial and legal information pertinent to the security, ensuring compliance with applicable regulations. Furthermore, this stage encompasses issuing preliminary approvals and providing essential guidance to complete the issuance process.
The electronic system marks a significant advancement in the securities issuance process, facilitating quicker approval procedures and simplifying regulatory processes through digital transformation. This transition is expected to minimize paper transactions and lessen the administrative challenges faced by issuers.
Future stages of the electronic system
The system is set to incorporate two additional phases beyond the application submission and issue approval stage, which will be disclosed at a later time. The second phase will focus on the book building process, while the third phase will address the listing stage on the Muscat Securities Market (MSX).
The FSA further remains dedicated to enhancing all services offered to individuals and institutions. Notably, the percentage of digital transformation in services provided by the FSA reached more than ninety-three percent in 2024.
