The Bahrain bourse said yesterday it devised special guidelines with the Central Bank of Bahrain (CBB) to facilitate trading by key persons in securities listed on the stock exchange.
The guidelines on issuers' key person dealing policies were also aimed at reducing the administrative burden on issuers and key persons and to establish greater transparency at BSE and ensure a fair environment for the trading of all investors in the market, the Bahrain Stock Exchange director, Fouad Rashid said yesterday.
The Bahrain Stock Exchange (BSE) organised yesterday a workshop on the guidelines attended by over 75 officials representing various listed companies, brokers and custodians
Key persons are defined as members of the issuer's board of directors, senior management, the issuer itself, and persons nominated by the issuer's board. The guidelines also allow key persons to deal during the year without any restrictions provided that they are obliged to the rules of the issuer's policy in this regard, Rashid said.
Mona Al Mannai, representative of the Capital Markets Supervision Directorate of the Central Bank of Bahrain was present while Ebrahim Al Aradi, Head of Trading and Members Affairs and Abdullah Abdin, Head of Clearing and Settlement made a presentation on the contents of the guidelines on issuers' key persons dealing policies.
In addition, the audience was also briefed about the obligations that issuers and key persons must comply, including conduct by parties that contravene the provisions of an issuer's dealing policy, which would be dealt with severely. Guidelines also mandate that the courses of action and penalties that an issuer may impose should be clearly stated in the Dealing Policy.
By K.V.S. Madhav
© Bahrain Tribune 2010
