History of Muscat securities market (MSM)

This market is located in Oman, Sultanate of Oman and it is founded in 1988.  in information technology when there is a need for the new technology in the field of marketing and this can be done through replacing the present trading system. This market was developed for introducing new mechanism in the field of market and finance. After the establishment of Muscat securities market, this market provides a better environment for the foreign companies through attracting the foreign investors and also investment in Oman. In the past the settlement mechanism was involved with the three parties. Afterwards the newly introduced settlement formula was used through a settlement bank with settlement guarantee fund. This market system was more efficient than the previous because this system operates in line with the other international standards. This modern technology in the market used in huge market in the world and it is adopted by the Muscat securities market in 1998 that matches with the key objectives of the market (MSM, 2018).

From Atos Euronext France the MSM has been running a electronic trading system, and this system is very convenient to the other markets in the world and this system is used by many developed markets in the world. In the role of trading this system is involved in providing the data and information to the higher authorities in the market and also this will enable them to participate in worldwide trading. Afterwards this system is also involved in broadcasting the whole trading data and helps to facilitate the whole market by adding many investor from worldwide in the future and also able to make a link with the other stock markets in the GCC. This system makes the market more efficient in the future.

Objective of Muscat securities market

The main objective of this market is to regulate and also control the Oman security market. They want to improve their market through the use of new technology, because they want attraction from the worldwide investors through the use of electronic market. The other objective was that they want to participate effectively for the settlement of Sultanate’s financial sector. The Muscat securities market wants to become one of the highest regulated markets in the region (MSM, 2018).

Role of Muscat securities market

The Muscat securities market plays a very crucial role in the other stock markets in the world. The security markets have to improve the technology so that they can able to communicate better with the other investors in the world. The Muscat was struggling to make a mark in the world’s stock market so that they have improved their market according to the France. The most important function of securities market of Muscat is that they mesh with the first. The main role of this the securities market that they have to enhance their system according to the other stock markets in the world. This stock market in Oman is involved in giving loan and other capital to the different industries in that country. Any industry or company wants loan to enhance their company revenue so that they gives shares. The essential functions of the securities market of Oman is that they are involved in providing liquidity and marketability to existing securities in that country, this will help the other securities market to communicate with the investors. The Muscat securities market enhances their technology and provides an ideal platform to deal in the securities. This stock market has to stable the pricing for the other securities market in that country. The next function of this stock market is that through the use of best electronics in technologies the Muscat securities market has to improve the safety for transaction for the other stock markets, because all the stock markets are organized. They have to protect the interest of the investors, if the Muscat security market is not able to protect the interest of investor so their stock market will be in danger in the future. Afterwards the next important function of the Muscat securities market is that they have to contribute in the economic growth.

This role is extremely important because if the stock market is unable to improve the market so they are also unable to contribute in the economic growth. And of the securities markets contributes for the economic growth in a better way so this will help the investors to get double benefit in the future. These benefits include that they can able to change in the market price and also able to sell their shares at the existing market price. After this the next role of the Muscat securities market is that they have to spread equity cult. They have to improve the information about the stock exchange of the country and give proper information about the economic conditions of the listed companies in that country. The last important function of these market securities is that in Oman they provide scope for speculation. The investors from different countries when take part in the market securities so the condition at which the market price change this is called speculation (Higgins, 2007).

Two suggestions for improving the functions/ role of MSM

The first suggestion for improving the role of Muscat securities market they need to increase the safety of transaction because if they increase the protection of their investors so that the investor able to take part in their market. The next function of this stock market is that through the use of best electronics in technologies the Muscat securities market has to improve the safety for transaction for the other stock markets, because all the stock markets are organized.

The next important suggestion is that the Muscat securities market needs to improve the technology in the market if the technology is improved so they can able to attract more investors from the markets. This is because if the technology is improved so the investors feel free to take part in the market. Afterwards the newly introduced settlement formula was used through a settlement bank with settlement guarantee fund. This market system was more efficient than the previous because this system operates in line with the other international standards.

Portfolio: 2

EMI Payment Schedule (Short Term)

The short term EMI payment schedule is prepared for the period of 3 years. The personal loan is selected for meeting the financing needs. Many banks in Oman provide personal loan by keeping the amount of salary of the individuals in mind. Many banks in Oman provide personal loan on interest rate of 4.6%. The amount of loan which is assumed to be taken from bank is 100000.

The payment in each year will be done 12 times which means that payment will be done per month. Through calculations the monthly payment which have to be made 2979. The interest payment in the beginning is higher however with the passage of time the interest payment will start decreasing.  The monthly payment over the years will remain the same and after 3 year period the principal balance will become zero (Arnett, 2011).

EMI Payment Schedule (Long Term)

The Long term EMI payment schedule is prepared for the period of 7 years. The personal loan is selected for meeting the financing needs. Many banks in Oman provide personal loan by keeping the amount of salary of the individuals in mind. Many banks in Oman provide personal loan on interest rate of 4.6%. The amount of loan which is assumed to be taken from bank is 300000. The payment in each year will be done 12 times which means that payment will be done per month. Through calculations the monthly payment which have to be made 4184. The interest payment in the beginning is higher however with the passage of time the interest payment will start decreasing.  The monthly payment over the years will remain the same and after 7 year period the principal balance will become zero.

Portfolio: 3

Muscat Securities Market

The financial institution that has been selected for evaluation is the Muscat Securities Market. The operations of the Muscat Securities market are critically evaluated and deep insights are provided regarding this financial institution. Muscat securities Market is a major financial institution that is operating in Oman and play significant role in the financial activities of the country. This market system was more efficient than the previous because this system operates in line with the other international standards (Pandey, 2015).

This modern technology in the market used in huge market in the world and it is adopted by the Muscat securities market in 1998 that matches with the key objectives of the market. From Atos Euronext France the MSM has been running a electronic trading system, and this system is very convenient to the other markets in the world and this system is used by many developed markets in the world. In the role of trading this system is involved in providing the data and information to the higher authorities in the market and also this will enable them to participate in worldwide trading.

Origin/Background of Muscat Securities Market

Muscat Securities Market (MSM) is the stock exchange present in the city of Muscat Oman. It is also the only stock exchange in Oman. The stock exchange was established in the year 1988. According to 2010 statistics the market capitalization of Stock exchange was $ 20.239.74 million. The index of the exchange is MSM 30. The MSM 30 was formed in the year 1992. This index include 30 major companies that operates in Muscat. The muskrat securities market has strict rules & regulations regarding the listing of the corporations. Only those corporation can be listed who generate significant amount of profit over the years. Over the years the institution has grown significantly and implemented latest technology to improve its current operations. In simple words the new system which the institution has implemented have improved its activities up to lot of extent (Aebi, et al., 2012).

Major Milestones of Muscat Securities Market

Since its establishment in the year 1988 the organization have achieved several milestones and have become a major financial institution in the country. In the year 1992 the institution launch its MSM general index. In the year 1998 the institution begin using electronic trading system which was a major mile stone for the institution. The new information center was formed in the year 2003 along with remote trading system. In the year 2006 the old electronic trading system was upgraded by EURONEXT. In the year 2010 the institution get certified by ISO in total quality Management.

In the year 2011 the MSM get certification of information security & protection by ISO. Meeting the ISO standards indicates that over the years the institution has improved its operations up to lot of extent. Again in the year 2012 the institution upgrade its electronic trading system from EURONEXT v.800 to v.900. In the year 2014 the corporation made agreement with the EURONEXT to improve the trading system of the MSM in the near future. In the year 2017 MSM have become commercial organization. The organization has developed data center in the same year.

Key Personnel of Muscat Securities Market

Dr. Ashraf Al Nabhani is the chairman of the organization. The board of directors are included in the top management of the institution and are responsible for taking major decisions of the institution. The institutions over the year have experience immense growth and the directors of the corporation has played significant role in the development and growth of the institution. Ahmed Saleh Al Marhoon is the director general of the institution and play important role in the management of the institution. There are several individuals who are working in the organization in its various departments (MSM, 2018).

The MSM have its own website from where the investors can take necessary information regarding trading and about the stock exchange itself. The website of the MSM is quite user friendly and provides brief information to its users. MSM provides E-Services to the investors as well which include web services etc. the stock exchange provide CPD program and CISI program. Following is the organizational structure of Muscat Securities Market:

                                                           

Source: https://www.msm.gov.om/page.aspx?b1=Our-Profile&b2=Organizational-Structure&p=OurOrgOrgStructure&ti=Organizational-Structure

Current Status of Muscat Securities Market

Over the years the Stock Exchange has gain immense growth. The corporation has achieved several milestones which indicates that the institution is improving its operations year after year. The current performance of the institution is satisfactory and it can be estimated that in the upcoming years the corporation will experience further growth. In recent years the institution has become Commercial Corporation. The ISO certifications and agreement with the EURONEXT proves that the institution believes in continuous improvement and in the upcoming years it wants to provide suitable platform for the foreign investors. The economy of the Oman is growing steadily and it needs foreign investment so that new companies can enter in to the company and provide opportunities to the local people (Atrill, 2014).

Evaluation of Services

The MSM have its own website from where the investors can take necessary information regarding trading and about the stock exchange itself. The website of the MSM is quite user friendly and provides brief information to its users. MSM provides E-Services to the investors as well which include web services etc. the stock exchange provide CPD program and CISI program. The detail regarding these program is available on their website. The MSM issues its annual report along with statistical bulletins and companies guide for the investors so that investor can take rational decision regarding investment in various stocks (Pathan & Faff, 2013).

Procedure & Documentation of services

The rules and regulation as discussed earlier are quite strict for listing in the stock exchange. Only those companies can be listed in the stock exchange who are generating significant amount of profit. Those corporation who fulfill the criteria have to provide all the necessary documents which are required by the Exchange. The stock exchange has implemented new mechanism which allow stable dealing of the stocks. The aim of the latest system is to attract foreign investment in the country. The detail regarding these program is available on their website. The MSM issues its annual report along with statistical bulletins and companies guide for the investors so that investor can take rational decision regarding investment in various stocks.

Sample

                                                      

Source: https://www.msm.gov.om/licensee-details-form.aspx

References of Muscat Securities Market

Aebi, V., Sabato, G. & Schmid, M., 2012. Risk management, corporate governance, and bank performance. Volume 36, p. 3213–3226.

Arnett, G. W., 2011. Global Securities Markets: Navigating the World's Exchanges and OTC Markets. s.l.:John Wiley & Sons,.

Atrill, P., 2014. Financial Management for Decision Makers. 7 ed. s.l.:Pearson Higher Ed.

Higgins, 2007. Analysis for Financial Management. s.l.:Tata McGraw-Hill Education.

MSM, 2018. Vision & Mission. [Online]
Available at: https://www.msm.gov.om/page.aspx?b1=Our-Profile&b2=Vision-%26-Mission&p=MissionAndObjectives&ti=Vision-%26-Mission

Pandey, I., 2015. Financial Management. s.l.:Vikas Publishing House.

Pathan, S. & Faff, R., 2013. Does board structure in banks really affect their performance?. Volume 37, p. 1573–1589.