Wednesday, September 22
09:54 AM

CMA amends clearance and settlement regulation

12 Dec 2020

The Capital Market Authority (CMA) has issued a decision amending certain provisions of the Clearance and Settlement Regulation by replacing Article 44 related to transfer of Repurchases Agreements (Repo).

The amendment limits the transfer of title to government development bonds or sukuk or treasury notes or any other products accepted by the Central Bank of Oman (CBO) to and from the accounts of commercial banks and their Islamic windows or Islamic banks and the account of the CBO that pertain to Repo transactions.

A commission at RO50 will be charged to the applicant for each transaction, the CMA said in a statement issued last week.

It said the Article was changed in line with the global and regional regulations to reduce the fees to enhance trading processes among banks which would contribute to supporting the banking sector to achieve liquidity for various financial and banking entities.

Previously the commission charged by Muscat Clearing and Depository Company was 0.00005 per cent of the market value of the transferred securities charged to the application at a maximum of RO500 and a minimum of RO5 for each transaction.

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