Muscat: The market watchdog Capital Market Authority (CMA) has issued a decision that introduces amendments to the guaranteed finance regulation. The decision comes after continuous monitoring of the efficiency of regulations, assessing them and identifying the best ways to develop them in a bid to ensure having the best professional practices in this field.
The amendment includes cancelling clause 7 of article 3 of the regulations which stipulates that the investment in stock by one company should not exceed 20 per cent of the client portfolio at the time of purchase. The CMA also cancelled clause 7 of article 4 which limits the interest on the guaranteed finance accounts to the rate stipulated by the Central Bank of Oman on the personal loans.
The amendment comes in a bid to encourage licensed companies and banks to provide competitive services to their customers. CMA board has earlier approved the guaranteed fiance account system for the companies licensed to do this business by which the broker fiance part of the stock value against the guarantee of the stocks or balance at the guaranteed finance account as per regulatory conditions.