BHBNewsLetter March2019

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Issue 19 -MARCH 2019
BAHRAIN BOURSE AND TAMKEEN SIGN AN MOU TO SUPPORT GROWTH BUSINESSES
TO LIST ON BAHRAIN INVESTMENT MARKET
CBB ISSUES RESOLUTION NO. (23) OF 2019 FOR THE ISSUANCE OF REGULATIONS IN
RESPECT OF SHORT SELLING AND GIVING SECURITIES ON LOAN
Bahrain Bourse and Tamkeen
signed an MOU on 7th March 2019
to expand the scope of Tamkeen’s
Business Development Program
to include support of growth
businesses interested in listing on
the Bahrain Investment Market
(BIM), an innovative equity market
designed specifically to offer the
region’s fast-growing companies
As part of the Central Bank of
Bahrain’s (“CBB”) effort to develop
the financial sector in the
Kingdomof Bahrain and in line with
international best practices,
the CBB has issued Resolution
No. (23) of 2019 for the
Issuance of Regulations in
an alternative cost-and-time
effective means for raising capital.
The MOU was signed by the
CEO of Bahrain Bourse Shaikh
Khalifa bin Ebrahim Al Khalifa
and the Chief Executive of
Tamkeen, Dr EbrahimMohammed
Janahi in the presence of several
officials from both organisations.
According to the MoU, the
support extended to growth
companies will cover 50% of
the costs associated with listing
on Bahrain Investment Market
and appointing an Auhtorized
Sponsor (specialized advisory
firm) at a cap of BD30,000 per
company. In addition, the support
wi l l cover 10 companies
ov e r a one - y e ar p e r i od .
The BIM is an innovative equity
market launched by Bahrain
Bourse to enable fast-growing
companies in the Kingdom of
Bahrain, the GCC and MENA
region to obtain growth capital via
direct offering. The market offers a
more relaxed regulatory framework
with easier disclosure and
minimal admission requirements,
as well as support and guidance
provided through specialized
advisor y firms (Sponsors).
According to Bahrain Bourse’s
regulations, companies interested
in listing on Bahrain Investment
Market are required to appoint
and retain the services of an
Authorized Sponsor at all times
(prior and during the listing
process). The Authorized Sponsor
will be responsible for providing
companies with the required
support and guidance to fulfill
the admission for listing on
criteria Bahrain Investment
Market, and ongoing financial
disclosure requirements once listed.
Currently, the BIM’s network
of authorized consulting firms
includes Grant Thornton, KPMG,
Key Point, BDO Consulting,
SICO, and Almoayyad Chambers.
respect of Short Selling and
Giving Securities on Loan,
published in t he Officia l
Ga z e t t e No. ( 3 4 1 1 ) , on
Thursday 21 st March 2019.
By virtue of Article (92) of the
Decree No. (64) of 2006 with
respect to promulgating the
Central Bank of Bahrain and
Financial Institutions Law (“CBB
Law”) which states that, “The
Central Bank shall specify the
types of securities, which may
be traded by loan and short sale,
the terms and procedures of
such transactions and the rights
and obligations of all concerned
parties”, this Resolution introduces
shor t s el l i ng and g iv i ng
s e c u r i t i e s o n l o a n
i n t o t h e K i n g d o m ’ s
capital markets ecosystem.
In order to ensure the effective
implementation of the provisions
of this Resolution, the CBB
emphasized that the Licensed
Exchange and the Licensed
Clearing House shall issue their
own rules and guidelines and
shall establish controls and
procedures related to dealing
in securities through lending
and borrowing and short
selling according to the provisions
stipulated in the Resolution.