Bahrain Bourse Enhances Corporate Action Timeline

Sunday, February 23, 2020
As part of Bahrain Bourse’s (“BHB”) continuous efforts to develop the Capital Market in the Kingdom of Bahrain, and in relation to the Listing Rules published on 13th January 2020 and recent amendments to requirements under CBB Disclosure Standards, Bahrain Bourse would like to notify shareholders of all listed companies of amendments put in place for providing specific timeframes in relation to recommendation of declaration of dividends. The corporate action timelines amendments aim to provide further flexibility for shareholders to conduct their trading transactions post the recommendation of declaration of dividends announced during the General Meeting date.
 
The Listing Rules published on 13th January 2020 along with Central Bank of Bahrain’s amendments in relation to Corporate Actions timeline (has been implemented with an objective to enhance the existing practice and eliminate any potential redundancy and ambiguity with respect to the timeline mechanism of declaration and payment of dividends and Bonus shares if any. Further, the amendments have been put in place in line with international best practices and to achieve consensus across market participants.
 
The amendments of corporate action timelines and mechanism provides specific timeframes in relation to recommendation of declaration of a dividend (including bonus shares, if any), the rate and amount per share, the Record Date, the Cum-Dividend Date, the Ex-Dividend Date and the Payment Date.
 
The amended corporate action timelines, which came into effect as of December 2019, requires that the Cum-Dividend Date falls at least one trading day (excluding the date of the general meeting) after the date of the general meeting.  Issuers must ensure payment of declared dividends to shareholders, whose names are registered in the company’s share register on the Record Date, no later than 10 trading days from the Record Date.
 
Shaikha AlZayani, Director of Listing & Disclosures of Bahrain Bourse commented stating, “The recently announced amendments to the corporate action timeline aims to provide shareholders with additional timeframe and flexibility in conducting their trading transactions.”