Capital Markets Supervision Directorate (“CMSD”)

CMSD Functions:

• Regulate and supervise licensed exchanges and market operators;
• Regulate and supervise licensed clearing, settlement and central depository systems;
• Regulate and supervise licensees that are members of licensed exchanges and market operators; and members of clearing, settlement and central depository systems, with respect to their activities on those SROs;
• Regulate and supervise crypto-asset service licensees;
• Approve the listing and delisting of securities;
• Approve public and private offerings of securities;
• Regulate and supervise listed companies;
• Supervise the implementation of the disclosure standards, corporate governance principles and the compliance of the listed companies;
• Regulate takeovers, mergers and acquisition transactions, and repurchase of securities of listed companies;
• Undertake investor education initiatives;
• Undertake market surveillance; and
• Conduct investigations and apply enforcement measures.

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

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 as stipulated in the CBB Law, rules and regulations in general and the Clearing, Settlement and Central Depository (‘CSD’) Module of CBB Rulebook Volume 6 in particular.

The CBB’s supervision of licensed market intermediaries and representatives 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 and representatives with the CBB requirements as stipulated in the CBB Law, rules and regulations in general and the Market Intermediaries and Representatives (‘MIR’) Module of CBB Rulebook Volume 6 in particular.

The CBB’s supervision of crypto-asset service licensees consists of on-site and off-site supervision.

The purpose of the CBB’s supervision and monitoring is to ensure compliance by the crypto-asset service licensees with the CBB requirements as stipulated in the CBB Law, rules and regulations in general and the Crypto-Asset Module (‘CRA’) Module of CBB Rulebook Volume 6 in particular.

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

The Offering of Securities (‘OFS’) Module of the CBB Rulebook Volume 6 formulates the regulatory framework of the CBB to govern the issuing, offering and/or marketing of securities in/from the Kingdom of Bahrain and provides for timely, comprehensive and specific disclosure requirements and conditions applicable to the contents of the prospectus in relation to public and private equity offerings. The Module also contains equivalent requirements applicable to the issuing, offering, listing and/or marketing, for public and private offerings, of debt securities and Islamic Sukuk.

Also, the Takeovers, Mergers and Acquisitions (‘TMA’) Module of the CBB Rulebook Volume 6 provides an orderly framework within which take-overs, mergers and acquisitions are to be conducted and sets forth comprehensive and specific requirements relating to the 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 or merger or acquisition.

The CBB rigorously oversees the transparency and orderliness of Bahrain’s capital markets by ensuring the effective implementation, by all capital market service providers, of the CBB’s Disclosure Standards and the requirements stipulated under the High-level Controls Module (Corporate Governance) of the CBB Rulebook Volume 6; in order to maintain the market’s confidence and safeguard the interest of the capital markets’ investors.

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.

Market Surveillance monitors securities trading activity to detect and prevent any fraudulent, manipulative or abusive trading practices, in order to enhance investors’ confidence in the integrity and fairness of the capital markets of the Kingdom of Bahrain.

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