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  • BC-7.1 BC-7.1 Introduction

    • BC-7.1.1

      This Chapter applies to all full commercial banks in Bahrain.

    • BC-7.1.2

      Investors purchasing securities (as defined from time to time by the Bahrain Stock Exchange ("BSE")) listed on the BSE may pay for them under the Margin Trading System ("The System") by borrowing a portion of the purchase price from a participating bank. The System is subject to relevant provisions of the BMA Law, the BSE Law, any rules and regulations issued pursuant to such Laws and this Module. The System applies to equities in companies listed on the BSE. Unless restrictions apply under Bahrain law in this regard, the System shall be available to Bahraini or non-Bahraini investors, whether resident or non-resident in Bahrain.

    • BC-7.1.3

      The main objective of introducing the System is to enhance the overall activity on the BSE, allowing investors to leverage their investments, in a controlled manner.

    • General criteria

      • BC-7.1.4

        Only Full Commercial Banks licensed by the Agency will be permitted to act as participating banks for the System. Participating banks must each receive the prior general written approval of the BMA in order to take part in the System. The BMA will notify the BSE of the identity of participating banks for the System. The BMA's approval may be withdrawn at its discretion.

      • BC-7.1.5

        Stock Exchange Brokers will not be permitted to act as lenders or financiers for the System.