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Settlement Guarantee fund

• Approve the general policies of the Fund.
• Ensure that the Fund`s money is used for the purposes for which it was established and to invest its money in the aspects specified in this Regulation.
• Open accounts in the name of the Fund at the banks in which the balances of the Fund are deposited, and grant authorizations on such accounts on behalf of the Fund.
• Obtain an insurance policy against risks of the Fund if it deemed necessary.
• Issue instructions to the banks in which moneys of the Fund are deposited, to withdraw money from the Fund’s accounts, within the limits of the deficit, to complete the financial settlement process between the members.
• Follow-up collection of Fund’s claims at the members and others.
• Selling or liquidating any of the Fund`s assets to serve the interest of the Fund.
• Borrow or obtain credit facilities to pay the settlement obligations with the guarantee of the assets of the Fund, and each member shall bear the cost attributed to it of such loans.
• Submit any proposal that it deems appropriate for the development of the Fund`s business and present it to the concerned authorities for approval.
• Appoint qualified staff required to manage the Fund and execute the related work.
• Settle the administrative expenses of the Fund.
• Determine the amounts owed by members who failed to settle their obligations which the Fund has covered on their behalf.

The Regulation of Clearing and Settlement includes the provisions governing the Settlement Guarantee Fund in Chapter V of the Regulation.
Chapter Five (Regulation of Clearing & Settlement Provisions)
Settlement Guarantee Fund

• Covering the cash deficit resulting from the failure of the buyer member in payment.
  
• Covering the deficit in the securities resulting from the failure of the seller member in delivery.

• A representative of the Authority.
  
• A representative of the Market.
  
• Another representative of the company.
  
• Two members of the companies working in the field of securities and are nominated by the Association of companies working in the field of securities.
  
• The Committee shall be formed for a period of three renewable years, and in the forming resolution Vice-President and the Secretary of the Committee shall be determined. The Vice-President shall replace the President in case of absence. The Resolution shall also set the remuneration and attendance allowance of the members and the Secretary.
  
• The Committee shall hold its meetings at the request of its Chairman. The Secretary shall convene the meetings, prepare the necessary minutes and correspondence, follow up the implementation of the Committee’s decisions, and any other tasks assigned to him by the Chairman of the Committee.
  
• The meeting of the committee shall not be valid unless it is attended by at least three members, including the president or his deputy. The committee shall take its decisions by a relative majority. In the event of a tie, the President of the Meeting shall be deemed to have the same vote.
  

• Approve the general policies of the Fund.
  
• Ensure that the Fund`s money is used for the purposes for which it was established and to invest its money in the aspects specified in these Regulation.
  
• Opening accounts in the name of the Fund at the banks in which the balances of the Fund shall be deposited, and grant authorizations on such accounts on behalf of the Fund.
  
• Obtain an insurance policy against risks of the Fund if it deemed necessary.
  
• Issue instructions to banks in which moneys of the Fund are deposited, to withdraw money from the Fund’s accounts, within the limits of the deficit, to complete the financial settlement process between the members.
  
• Follow-up collection of Fund’s claims at the members and others.
  
• Selling or liquidating any of the Fund`s assets to serve the interest of the Fund.
  
• Borrowing or obtaining credit facilities to pay the settlement obligations with the guarantee of the assets of the Fund, and each member shall bear the cost attributed to it of such loans.
  
• Submit any proposal that it deems appropriate for the development of the Fund`s business and present it to the concerned authorities for approval.
  
• Appoint qualified staff required to manage the Fund and carry out the related work.
  
• Settle the administrative expenses of the Fund.
  
• Determine the amounts owed by members who failed to settle their obligations which the Fund has covered on their behalf.
  
• The Committee may delegate any of its powers to its Chairman or to any of its members. The Committee may also use experts to perform some of its functions except supervision on the Fund.

• Contribution to the capital of the Fund at the rate of 5% of its paid up capital, provided that it is not less than (45,000) forty five thousand Omani Riyal and not more than (135,000) one hundred and thirty five thousand Omani Riyal, In the event of an increase in its capital, the member shall pay the additional contribution resulting from such increase.
  
• The additional contribution determined by the Committee.
  

• Deduct of the amounts paid by the member from his contribution to the Fund.
  
• The Fund shall own the purchased securities for which the member has not paid, according to the data and documents submitted to the Fund.
  

• Bank Deposits
  
• Bonds
  
• Any other short, medium and high-liquidity financing tools.
  

An investment decision is taken by the committee after reviewing the appropriate alternatives available, and it should focus on the liquidity and risk factors mainly when choosing between available alternatives and taking into account ensuring sufficient liquidity in the Fund to settle any claim received.