In the early thirties and sixties, shareholding companies and brokerage firms were in charge of overseeing and managing trades in Shares and Corporate Bonds, respectively. Following January 1st of 1978, the Amman Financial Market (AFM) was founded as a new supervisory body to not only watch over the financial markets as a whole but also play the role of the Stock Exchange. To align itself with the international standards and regulations, the Securities Markets in Jordan has made yet another major shift after the Securities Law No.23 in 1997, which led to the creation of three important regulatory bodies, namely The Jordan Securities Commission (JSC), The Amman Stock Exchange (ASE), and The Securities Depository Center (SDC). While being in charge of their respective duties and functions, each of the aforementioned bodies was to adhere to the international standards, abide by the required legal framework in terms of authorizing new financial instruments, and, of course, attract more investors by promoting transparency and fair dealing practices in the Jordanian Markets.
These major changes have brought about a significant increase in market capitalization from JD 286 million to JD 4.1 billion, a major increase in trading volume from JD 9.7 to JD 389.4 million, as well as a substantial increase in the number of registered companies from 66 to 152 between 1978 and 1999. Furthermore, in 1999, the market value of listed shares accounted for a whopping 75% of the gross domestic product, which was a great accomplishment in and of itself.
Ever since its establishment in 1997, the JSC has been regularly monitoring and regulating all the licensees and registered companies in its jurisdiction, including Forex Brokerage Companies, Financial Services Companies, Securities Holders, Investors, Public Shareholding Companies, Investment Funds, Amman Stock Exchange, and other corporate as well as individual participants who want to take part in the Jordanian markets. To this day, the JSC makes constant efforts to ensure the safety of the investment culture in the Jordanian markets in complete and utter compliance with the national as well as the international laws and regulations. It is also worth noting that the JSC provides investors with the appropriate instructions required for a better understanding of the Stock Markets, so they can make informed decisions and thereby improve their trading experience – The Financial Awareness Promotion Platform (FINAPP) is one of such efforts to spread financial awareness.
To keep up with the ever-growing trends and movements of the financial markets and other technological advancements in the international scene, the JSC has taken initiatives to not only align itself with the flow of the markets in terms of securing its rightful place in it but also pave the way for a prosperous future for the Jordanian markets within its borders.
Under the Securities Law No. 18 of 2017, the Jordan Securities Commission is responsible for overseeing the deals in securities & stock trading markets, the accuracy of info provided to the investors by the issuers, periodic reports set forth by the issuers, the actions of the licensees across the capital markets, as well as mutual funds and investment companies, to name just a few.
Other notable objectives and aims of the JSC include the protection of investors in securities, constant monitoring of the capital markets for a fair and transparent trading environment for all, implementation of certain penalties for those who violate the laws, as well as risk assessment/management to keep the markets secure. What’s more, the JSC sees to it that all the entities that fall under its jurisdiction follow the rules and regulations completely and do not waver from their prescribed framework of duties – entities, such as the Amman Stock Exchange, the Securities Depository Center, the Securities-issuing Companies, and the Financial Services Companies & their licensors. Additionally, if provisions are violated by the licensees and complaints are made to the authority, such complaints will be fully investigated and dealt with accordingly, including but not limited to imposing severe financial penalties.
