BHBNewsLetter December 2019

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Issue 22 - DECEMBER 2019
BAHRAIN BOURSE ISSUES CONSULTATION PAPER ON ADMINISTRATIVE
FINES FRAMEWORK ON ISSUERS
BAHRAIN CLEAR ANNOUNCES GO-LIVE OF BENEFIT’S EFTS SERVICE
“FAWATEER” FOR ONLINE PAYMENTS
In line with its commitment to
position Bahrain’s capital market
at the forefront of global financial
Bahrain Clear (‘BHC’), a fully
owned subsidiary of Bahrain
Bourse, announced the launch
of the electronic payment
“Fawateer” to allow investors,
brokers, custodians and issuers
to pay all outstanding fees and
market standards, Bahrain Bourse
announced on Sunday, 24th
November 2019 the issuance
commissions of all services provided
by Bahrain Clear in a seamless
and secure manner in cooperation
with “BENEFIT”, the leading
electronic transactions company.
With the Fawateer service, investors,
brokers, custodians and issuers
of a consultation paper on the
proposed administrative fines on
Issuers. The proposed consultation
paper was disclosed on Bahrain
Bourse’s website and distributed
to related parties and stakeholders
to receive their views and
comments prior to the implemen-
tation of the administrative fines.
The proposed framework is being
introduced in accordance with
Bahrain Bourse (“BHB”) Listing
Rules (in final stages of approval)
which relates to the powers of
Bahrain Bourse to impose
administrative fines on issuers in the
event of non-compliance with the
Listing Rules and any other
applicable BHB rules, regulations
and directives as deemed
appropriate. To ensure appropriate
will be able to pay the fees for all
the services provided by Bahrain
Clear, including account opening,
opening of investor number (NIN)
for individual and institutional,
transfer of securities, transfer of
dual listed companies’ shares,
use of this power, Bahrain Bourse
intends to establish a framework
b a s e d on wh i ch it w i l l
impose Administrative fines for
non-compliance with applicable
rules, regulations and directives.
Administrative fines vary in
amount based on the impact and
frequency of the violation under
consideration, which can range
from BD 500 up to BD 10,000
on each violation and can go up
to BD 100,000 for cross-listed
companies exceeding 30% of the
Issuer’s share capital for each
secondary market they are
listed on. All cases will be
assessed and reviewed by an
Issuer Violation Committee
formed by Bahrain Bourse.
exempt case securities transfer,
securities account statement,
and p l e d g e r e g i s t r at i on .
The value added service will
be available through Fawateer’s
service on all e-banking platforms
and BENEFIT Pay. Bahrain Clear
Integrating the EFTS will reduce
the amount of time and effort
which is required for payment
and settlement. Benefit’s Fawa-
teer feature is the fastest and most
efficient online payment method,
which aggregates bills frommultiple
billers and presents those bills in
one interface providing real time
bill is worth noting
that an agreement was signed
between Bahrain Clear and
BENEFIT in May 2019, under
w h i c h B a h r a i n C l e a r
joined the Electronic Fund
Tr an s f e r Sy s t em ( EFTS ) .
CONSULTATION PAPER ON
ADMINISTRATIVE FINES
FRAMEWORK ON ISSUERS