Stipulation of 15 days for corporate results becomes mandatory in Oman

Muscat: Oman’s market watchdog Capital Market Authority (CMA) has made it mandatory for listed companies to disclose initial unaudited quarterly and annual results through the Muscat Securities Market within 15 days from the end of each quarter. This is part of amendments to the executive regulation of the Capital Market Law.
Those who fail to disclose initial results within 15 days will attract a fine of OMR500, according to CMA sources.
Detailed results will have to be announced within 30 days from the end of each quarter or end of the financial year. However, holding companies (or firms with subsidiaries) are given 45 days for announcing detailed financial results.
Although the same regulation was in place since 2014, the CMA was unable to take penal action against those who do not comply with 15-day stipulation since it was more of advisory in nature. The new amendments in Capital Market Law published in the official Gazette makes it mandatory. “Now it will attract penalty,” said a source.
The information needed to be disclosed in fifteen days include total sales or revenues, sales costs, total expenses, net expected profit after deducting taxes and comparisons of the same with the same period of the previous year.
The new amendments were approved by the board of directors of CMA Articles 280 and 248 of the executive regulation of the Capital Market Law.
The article 280 of Capital Market law provides “issuer to disclose the initial quarterly and annual un-audited financial results immediately after preparation. In all cases, disclosure should not exceed 15 days from the end of the quarter or the financial year as the case may be. Also, article 284 provides “Issuer shall disclose quarterly and annual audited and un-audited financial statements and initial results through the electronic transmission system of MSM in Arabic and English within the statutory time limits.”
Mohammed Said Al Abri, director general of issues and disclosure said; “Reducing the time limit for disclosure of the issuers of securities represents added value to MSM and will boost the confidence of market participants as availability of prompt information helps in taking sound investment decision and eliminate rumours.”
He added that the review of disclosure requirements and reducing the term was made due to the existence of advanced accounting systems with the issuers of securities, which allow speedy preparation of the financial statements. Hence, the move will make MSM one of the best Gulf Cooperation Council (GCC) stock exchanges in disclosure of information by listed companies.
This will help timely investment decision, investor protection through fairness, efficiency and transparency and prevent insider trading.
Al Abri added that CMA endeavours to enhance transparency to provide highest standards of confidence through quarterly statements and timely disclosure of material information on the issuers of securities.