Bahrain Bourse set to become self-regulatory body

MANAMA - The Bahrain Bourse (BHB) will become a self-regulatory organisation (SRO), licensed by Central Bank of Bahrain (CBB), with the power to create and enforce industry regulations and standards, according to new rules issued by the regulator.

A statement by CBB yesterday said resolution No 11 for 2018 lists out the procedures and rules for the implementation of the SRO model.

As a licensed marketplace for trading of securities and financial instruments, the bourse will have to go for an initial public offering (IPO) as stated in the Official Gazette No 3355 on March 1.

Commenting on the resolution and the need to strengthen self-regulation, CBB Capital Markets Supervision director Abeer Al Saad said providing local exchanges with self-regulation on listing of securities and financial instruments will enhance the regulatory and supervisory role of exchanges in all listing applications.

The CBB’s initiative to develop the capital markets in Bahrain is not only limited to issuing this resolution, as the CBB Capital Markets Supervision Directorate continues to make efforts to develop rules and regulations in this regard.

The resolution is effective from March 2 and to be implemented by all concerned parties and persons in their respective fields, where issuers are intending to list their securities or for any concerned entity acting on their behalf.

The licensed exchange will be the main point of contact for all listing applications during the submission and review period.

She said the directorate continues to review the public offering and listing requests concurrently with the licensed exchange, and to approve the registration of the prospectus, providing guidance and support to interested parties and persons in co-ordination with the exchange.

In order to ensure the effective implementation of the provisions of the resolution, BHB should issue its own listing rules, which shall take into account the protection of the rights of investors, the disclosure standards and in addition to addressing systemic risk.

The priority is to protect investors through the establishment of rules that promote ethics and equality.