Muscat: The Financial Services Authority (FSA) issued a circular to all public joint-stock companies and investment funds mandating the reduction of the period for transferring due dividend distributions to shareholders and unit holders from 15 days to a period not exceeding 7 days from the date of the General Assembly meeting or the Board of Directors meeting.
According to Oman News Agency, the FSA explained that the circular aims to accelerate the dividend distribution process in the capital market, reflecting the organizational efficiency of the Omani market. It emphasized the importance of ensuring that the disclosure of the General Assembly or Board of Directors decision, which approved cash dividend distribution to investors, includes the eligibility date determined by the Board of Directors for interim profits.
The FSA called upon all public joint-stock companies and investment funds to ensure the transfer of the approved cash dividends to the Muscat Clearing and Depository Company (MCD) within a period not exceeding 4 working days from the date of the General Assembly meeting, the Board meeting, or the eligibility date. It confirmed that the MCD is responsible for transferring the dividends to the bank accounts of their beneficiaries within a period not exceeding 3 working days from receiving the dividends from the issuing entities.