Muscat: The Financial Services Authority (FSA) has launched the first phase of the electronic system for issuing securities (E-IPO), an integrated digital platform designed to regulate issuance and listing procedures in the Omani capital market. The system was designed in cooperation between the National Program for Financial Sustainability and Financial Sector Development “Estidama” and Muscat Clearing and Depository Company (MCD.
The electronic system for issuing securities would contribute to reducing the time and effort required to complete issuance procedures and ensure a smooth flow of information between all parties concerned, which enhances transparency in financial transactions. The system also provides an advanced regulatory environment that facilitates the coordination process between the relevant parties such as the FSA, the issuer, the issue manager, the legal advisor, MCD, and MSX. This contributes to enhancing institutional cooperation and raising the level of readiness to offer securities more efficiently and reliably. Moreover, the introduction of this system supports achieving the goals of the capital market’s incentive program
The first phase, the current, of the electronic issuance system includes three basic procedures, starting with the procedures for submitting issuance applications, which include collecting and analyzing financial and legal data related to the security and ensuring their compliance with the applicable regulations. This stage also includes issuing initial approvals and providing the necessary directions to complete the issuance procedures, hence, the electronic system is a step forward in the process of issuing securities as it contributes to accelerating approval processes and facilitating the regulatory procedures through digital transformation, which would reduce paper transactions and reduce administrative complexities facing the issuers. This development also reflects positively on the financial market.
The system is scheduled to include two stages in addition to the stage of submitting applications and approving the issues, which will be announced later, is the book-building stage that aims to determine the price band for the securities in coordination with the issue managers and investors, according to the initial subscription mechanisms to ensure fair pricing in line with market standards followed by the listing stage on the MSX, where all regulatory procedures will be completed and the securities will be available for trading, which contributes to enhancing their liquidity and augmenting the attractiveness of investment in the Omani capital market.
The percentage of digital transformation in the services provided by the FSA reached more than 93% in the year 2024.
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