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  • Chapter 1 Chapter 1 Establishment and Objectives of the Exchange

    • Article 1

      There shall be established in the State of Bahrain, a Stock Exchange which shall be a separate legal entity. The Exchange shall carry out its activities in accordance with the provisions of this Law.

    • Article 2

      For the purpose of enforcing the provision of this Law, securities shall mean shares and bonds of Bahraini joint stock companies, and bonds and bills issued by the Bahraini Government, or public institutions and organizations, or any other Bahraini or non-Bahraini securities, approved for trading by the Stock Exchange Board. The By-Laws of the Stock Exchange shall set forth the rules and provisions governing the listing and admission to trade such securities.

    • Article 3

      The Stock Exchange's objectives shall include in particular, the following:

      1. Seek to develop the securities market in issuing and trading in securities, in a manner that is conducive to the realisation of the State's economic policy, to serve the development activities therein, and to enhance its economic position, both regionally and internationally.
      2. Develop and rationalize trading methods at the Exchange, with a view to ensuring proper and sound dealings and to providing protection for investors.
      3. Establish and promote ties and links with other Arab and international security exchange markets, and benefit from their methods of dealing, so as to accelerate the development of the Bahrain Stock Exchange.
      4. Encourage savings and further citizens' investment awareness, in a manner that will ensure that the savings are directed towards the economic sectors, for greater returns to the individual and society as a whole.
      5. Oversee the organization and regulation of securities trading on the market.
      6. Provide the necessary finance for supporting the requirements of economic and social development.

    • Article 4

      Transactions in securities listed and admitted to trade on the Exchange, shall take place in accordance with the terms and conditions determined by the Stock Exchange Board. Such transactions shall be executed solely through the Exchange, and shall be through a stockbroker who is duly registered with the Exchange. However, if certain transactions are conducted outside the Exchange, then they shall be subject to the rules and instructions adopted by the Exchange's Board and issued from time-to-time.

      In all cases, all transactions concluded with respect to such securities shall, upon the transfer of the ownership thereof, be registered in the Exchange's records. A company whose securities have been subject to transactions executed outside the Exchange, shall give notice to the Exchange's Board of the transactions that took place with respect to these securities.

      The Exchange's regulations shall determine the cases to be exempt from trading on the floor of the Exchange.

      Any trading in securities that is contrary to the provisions of this Article shall be deemed null and void.