Central Bank of Bahrain
  

CBB issues Resolution No. (11) for the implementation of the Self-Regulatory Organization (SRO) model of the Exchanges licensed by the Central Bank of Bahrain in relevance to listing securities and financial instruments post its initial public offering

Manama, Bahrain 7th March 2018 - The Central Bank of Bahrain (CBB) issued the resolution No. (11) for the year 2018, in respect of procedures and rules for the implementation of the Self-Regulatory Organization (SRO) model of the Exchanges licensed by the Central Bank of Bahrain in relevance to listing securities and financial instruments post its initial public offering, issued in the Official Gazette No. 3355, on Thursday 1st March 2018.

The resolution was issued in coordination with the Bahrain Bourse, being the concerned Exchange licensed by the CBB on which securities and financial instruments are traded.

Commenting on the issuance of the above mentioned resolution and the need to strengthen Self-regulation of the Exchanges, Mrs. Abeer Al Sheikh Ebrahim Al Saad, Director of the Capital Markets Supervision Directorate at the CBB, said: "The main objective for the CBB is to provide the legal and regulatory framework for the SRO model of the Exchanges in regards to the listing of securities and financial instruments after being offered to the public."

Moreover, Mrs. Abeer Al Saad pointed out that the above mentioned resolution is considered one of the important decisions issued by the Central Bank, stressing that the objective of this resolution is in the interest of all relevant parties, specifically investors and traders in the Exchanges.

In addition, 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.

She also stated that the resolution is effective from 2nd March 2018, 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 noted that the Capital Markets Supervision 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 coordination with the relevant licensed Exchange, as set out in the above mentioned resolution.

In order to ensure the effective implementation of the provisions of this Resolution, the licensed Exchange 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.

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