24 September, AtoZForex.com, Lagos – In a bid to establish a GCC Framework for market to promote cooperation for investor protection, the securities and commodities authority (SCA) has signed a memorandum of understanding (MoU) with the Gulf cooperation council (GCC) securities market regulators.
This MoU was signed during the just concluded sixth meeting of the Permanent Ministerial Committee of Board Chairpersons of the Gulf Cooperation Council (GCC) Securities Market Regulators.
The major recommendations approved by the Ministerial Committee of GCC Securities Market Regulators includes:
- Forming a team to prepare a study for the GCC securities market integration strategy and mechanisms
- Approving the final changes made to the unified rules for share offering in the GCC securities markets
Scope and Objectives
The idea behind this partnership is to promote a framework for joint cooperation and facilitating the exchange of information among securities market regulators. This is intended to promote enforcement and enhancement of compliance with securities legislations and any laws or regulatory and supervisory requirements. Also, it will inevitably result in promoting investor protection and strengthening market soundness via information exchange. This will also foster a stronger background for the regulators as it promotes cooperation among securities market regulators in training, developing human resources, and exchanging information to support securities markets.
Some of the projects which were discussed in the meeting includes:
- The importance of promoting networking among the GCC stock exchanges to further the interests of the GCC nationals and raise the status of the GCC markets globally.
- Review of the results and recommendations made by the working groups on initial offerings, subscriptions, and supervision, as well as the working group on training in market regulators.
- The meeting concluded with a discussion of the agenda of the proposed joint meeting to be held among the GCC Committee of Governors of Monetary Agencies and Central Banks and the Ministerial Committee of Board Chairpersons of the GCC Securities Market Regulators.
H.E. Abdullah Al Turifi, CEO of SCA, added that member states reviewed the General Secretariat's report on market integration strategy and mechanisms.
He explained that the committee emphasized the exchange of information as part of the work carried by the GCC markets being responsible for market supervision to protect markets and market participants and promote the principles of disclosure, transparency, and governance.
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