Muscat: The Financial Services Authority (FSA) has announced the launch of the initial phase of its electronic securities issuance system (E-IPO). This initiative is part of the broader efforts to digitize services and processes governing the Omani capital market, aimed at facilitating and expediting transactions between the FSA and relevant executive bodies.
The E-IPO serves as a platform for submitting applications and approving securities issues, functioning as a comprehensive digital solution to streamline the issuance and listing processes within the Omani capital market.
This system will create an electronic framework that enhances operational speed and improves market efficiency. It was developed in collaboration with the National Program for Financial Sustainability and Financial Sector Development, known as “Estidama,” alongside Muscat Clearing and Depository Company (MCD).
The electronic securities issuance system is expected to minimize the time and effort needed to complete issuance processes, ensuring a seamless exchange of information among all stakeholders, thereby promoting transparency in financial transactions.
The first phase of this electronic issuance system encompasses three key procedures, beginning with the submission of issuance applications. This includes the collection and analysis of financial and legal information pertinent to the security, ensuring compliance with existing regulations. Additionally, this phase involves the issuance of preliminary approvals and guidance necessary to finalize the issuance procedures.
The electronic system represents a significant advancement in the securities issuance process, enhancing the speed of approval and streamlining regulatory procedures through digital transformation. This innovation aims to minimize paper-based transactions and alleviate the administrative burdens faced by issuers.
The implementation of the system will occur in two additional phases beyond the initial application submission and approval stage, which will be detailed at a later date. The second phase will focus on the book building process, while the third phase will involve the listing on the MSX.
It is important to highlight that the FSA is committed to improving the services available to both individuals and institutions, achieving a digital transformation rate exceeding 93% in the services offered by the FSA by 2024.
