Court upholds CMA ruling on Sohar Power

MUSCAT, JUNE 11 – The Capital Market Authority (CMA) announced yesterday that an appeal filed by Sohar Power Company (SPC) against its ruling has been dismissed by the Appellate Division of the Administrative Court. Delivering its final judgement against Sohar Power Company, the appellate bench stated: “Admitting the company’s appeal as a matter of form and substantively dismissing it, uphold the appealed judgment and obligate the company to pay the expenses.”
In a press statement, the regulator said its Disciplinary Committee had earlier issued Decision 10/2018 dated May 16, 2018 “warning” SPC for violating the provisions of Article 5 of the Capital Market Law and obligated it to change its financial statement in accordance with IFRS 17.
Sohar Power appealed the decision, which was heard by the CMA’s Appeals Committee. The latter upheld the decisions of the Disciplinary Committee.
Thereafter, Sohar Power approached the Primary Division of the Administrative Court which rendered its judgment on March 3, 2019 admitting the case as a matter of form and dismissed it substantively and obligated SPC to pay the legal expenses.
“The company was obligated to change its financial statement in line with International Accounting Standards to present the financial position of the company clearly and fairly to allow the investors to take informed investment decisions,” said the CMA in its statement.
The Authority emphasised the importance of obligating the companies listed on MSM to comply with the laws and statutes regulating the capital market “to furnish protection for all the participants of the market through providing financial statements to investors that could assist them in taking sound and informed investment decisions”.