The Capital Market Authority (CMA) has given its initial approval for the merger of Shurooq Asset Management Services Co and Shurooq Securities LLC.
Both Shurooq Asset Management and Shurooq Securities are group companies of Al Shurooq Investment Services Holding and were separately licensed by CMA.
“We would like to inform you that the company has obtained CMA’s initial approval on transferring the licensed activities of Shurooq Asset Management Services to Shurooq Securities Company,” Al Shurooq Investment said in its filing to the Muscat Securities Market on Sunday. With trading volumes and activity on the local bourse declining in the last few years, small securities companies have been fighting for their survival.
Last year, CMA announced incentives to encourage brokerage firms to merge, in order to consolidate their operations, which might help reduce operating costs and increase profits.
The incentives included exempting merging firms from licensing and annual subscription fees for three years and from payment of the market share in trading commission for one year from the date of the merger coming into force. The board of Al Shurooq Investment Services approved the merger plan in February this year.