Central Bank of Bahrain
  

Capital Markets Supervision

The CBB's Capital Markets Supervision Directorate ('CMSD') is mandated to supervise and regulate the Kingdom's capital markets; its main objective being to maintain a transparent, fair and efficient capital market for ensuring investor protection, thereby protecting Bahrain's integrity and reputation as the region's leading financial centre.

In pursuing its mandate, the CMSD strives to comply with all relevant international standards, in particular those of the International Organization of Securities Commissions (IOSCO). Bahrain was last reviewed for compliance with IOSCO's core principles in 2005-06, by the IMF and in 2008 became a signatory to the IOSCO MMOU concerning consultation and cooperation and the exchange of information: a copy of the IMF's detailed assessment and the IOSCO MMOU is available under 'Related Information'.

All regulations relating to Capital Markets in Bahrain regulations  are under Volume 6 of the CBB Rulebook.

The CBB is countinously working in completing the implementation of its plan for the development and updating of the legislative, regulatory and supervisory framework for the capital market sector, in line with international standards and best practices in consultation with the stakeholders and interested parties in this sector and all other financial sector components in Bahrain.  Consultations papers can be viewed on the CBB website by clicking here.

Final versions of the modules are available in the Rulebook section of the website and can be viewed on the CBB website by clicking here.

Functions & Contact Details

CMSD:

  • regulates and supervises licensed exchanges, clearing houses and central depositories.

  • regulates and supervises licensees that are members of licensed exchanges, clearing houses and central depositories, with respect to their activities on those exchanges;

  • approves the listing and/or public and private offerings of securities;

  • to ensure the implementation of the disclosure standards, corporate governance principles and the compliance of the listed comapnies.

  • undertakes market surveillance, investigations and enforcement measures

  • undertakes investor education initiatives.

  • Regulate acquisitions, mergers, takeovers and repurchase of shares in fair and transparent manner.

    CMSD may be contacted at:

    The Director
    Capital Markets Supervision Directorate
    The Central Bank of Bahrain
    PO Box 27
    Manama
    Kingdom of Bahrain

    Tel: +973-17 547 907
    Fax: +973-17 532 957
    E-mail

Licensed Exchanges 

The CBB's supervision of licensed exchanges consists of on-site and off-site supervision. 


The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed exchanges with CBB requirements stipulated in the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'), rules and regulations in general and the Markets and Exchanges (MAE) Module of CBB Rulebook Volume 6 in particular.

Licensed Clearing, Settlement and Central Depository Systems

The CBB's supervision of licensed clearing, settlement and central depository systems consists of on-site and off-site supervision.

The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed clearing, settlement and central depository systems with CBB requirements stipulated in the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'), rules and regulations in general and the Clearing, Settlement and Central Depository (CSD) Module of CBB Rulebook Volume 6 in particular. 

Market Intermediaries and Representatives 

The CBB's supervision of licensed market intermediaries consists of on-site and off-site supervision.

The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed market intermediaries with CBB requirements stipulated in the Market Intermediaries and Representatives (MIR) Module of CBB Rulebook Volume 6.

Issuance, Listing and Corporate Restructure

The CBB acts as the listing authority. It reviews prospectuses for initial and public offerings, right offerings of securities and private placements memorandums.

The Offering of Securities Module of the CBB Rulebook volume 6 formulates the regulatory framework of the CBB to govern the issuing and offering of securities in/from the Kingdom of Bahrain and provides for timely, comprehensive and specific disclosure requirements and conditions applicable to public offerings and initial listings; contents of the prospectus. The Module also contains equivalent requirements applicable to debt securities on the Issuing, Offering and Listing.

Also, the Takeovers, Mergers and Acquisitions Module of the CBB Rulebook volume 6 provides an orderly framework within which take-overs, mergers or acquisitions are to be conducted and sets forth special requirements relating to timing and mode of offer, announcements, documentation and disclosure of adequate information to enable shareholders to make an informed decision as to the merits of an offer relating to a takeover, merger or acquisition.

Investor Education

CMSD intends to develop investor education programmes, for instance through the distribution of brochures, and presentations to schools and universities.

CMSD also supports the work of the Compliance Directorate, which is mandated to combat financial crime, in identifying any attempts to defraud investors. Investor alerts- for instance relating to boiler room scams- are posted on the consumer information section of the CBB website.

Investigation & Enforcement

To undertake Investigation of breaches of laws, rules and regulations and ensure an effective enforcement of regulatory requirements.

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