BHBNewsLetter September 2020

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Issue 25 - SEPTEMBER 2020
BAHRAIN BOURSE ADOPTS NEW PROCEDURES FOR LISTED
COMPANIES WITH ACCUMULATED LOSSES
As part of Bahrain Bourse’s (BHB)
continuous efforts to develop the
Capital Market in the Kingdom of
Bahrain and enhance transparency
in the market, BHB announced the
implementation of new procedures
related to listed companies with
accumulated losses of 20% and
above of its share capital based
on the financial results of the
third quarter 2020, following
obtaining approval from the
Central Bank of Bahrain.
The new procedures, which will
come into effective implementation
as of the third quarter financial
results 2020, and will classify and
color-flag listed companies with
accumulated losses on Bahrain
Bourse’s website under “Products
& Services – Asset Classes”,
enabling investors and others
to clearly identifythe financial
position of listed companies
and make informed investment
decisions. As per the new
procedures, listed companies
with accumulated losses will be
classified into three categories
upon disclosure of its financial
results: the first category will
include companies with losses
between 20% and less than 50%
of their share capital, the second
category will include companies
with losses of 50% up to 75% of
their share capital, and the third
category will encompass companies
with accumulated losses of 75%
and above of its share capital.
Accordingly, listed companies
within the first category will
be yellow-flagged on Bahrain
Bourse’s website, and listed
Companies within the second
category will be orange-flagged,
a nd t h e t h i r d c a t e g o r y
will be red-flagged. Under the new
procedures, listed companies are
required to make an immediate
public disclosure once its
accumulated losses reach 20% or
more of its share capital. Companies
shall disclose the total accumulated
losses, its percentage of the
share capital, justification of the
accumulatd losses, and measures
taken to restore its financial
position. The company will be
flagged accordingly indicating
that it has reached accumulated
losses. After restoring its financial
position, the company shall
immediately disclose to the public
the reduced accumulated losses,
and the yellow flag on the website
will be removed accordingly.
The same procedure shall apply to
the companies with accumulated
losses that reach 50% or more of
its share capital. The company will
be orange-flagged indicating that
it has reached accumulated losses
of 50% or more of its share capital.
In the event that accumulated
losses of a listed company reach
75% or more of its share capital,
BHB will immediately suspend
the trading on the company and
the company will be red-flagged
until a public disclosure is made
once the company’s accumulated
losses are reduced to 75% or below.
Bahrain Clear announced the
election of its Senior Director of
Operations, Mr. Abdulla Abdin, as
President of the Africa and Middle
East Depositories Association
(AMEDA) following the retirement
of Mr. Mohamed Abdulsalam.
Mr. Khaldoun Al-Tabtabaie, CEO
of Kuwait Clearing Company,
was elected as Vice President
during the Association’s Global
meeting that was held virtually.
AMEDA was established in April
27, 2005. AMEDA is a non-profit
o r g a n i z a t i o n c omp r i s e d
o f C e n t r a l S e c u r i t i e s
Depositories and Clearing
Houses in Africa and the Middle
East. The Africa & Middle East
Depositories Association is formed
for the benefit of its Member
community, as an elective,
inter-professional and regional
facility to foster a spirit of coop-
eration, reciprocity and harmo-
ny among members, to achieve
those objectives it determines
from time to time. AMEDA
includes 30 members comprising
of Central Securities Deposito-
ries and Clearing Houses across
Africa and the Middle East.
BAHRAIN CLEAR REPRESENTATIVE ELECTED AS PRESIDENT
OF AMEDA