Back Custom print Link Text Only Rich Text Print

  • [ S ]

    • Safeguarding Shari'a compliant financial instruments

      Safeguarding Shari'a compliant financial instruments means the safeguarding and administration of Shari'a compliant financial instruments belonging to another person (see LR-1.3.29 ff).

    • Salam

      Purchase of a commodity for deferred delivery in exchange for immediate payment according to specified conditions or sale of a commodity for deferred delivery in exchange for immediate payment.

    • Salam or Istisna'a sukuk

      These are sukuk that represent a sale of a commodity on the basis of deferred delivery against immediate payment. The deferred commodity is a debt in-kind against the supplier because it refers to a commodity which is accepted based on the description of the seller.

    • Secured Obligations

      Obligations that are secured by legal rights on specifically designated assets owned by the bank which are used in the case of bankruptcy, insolvency or liquidation.

      Added: October 2018

    • Security(ies) (as referred to in Chapter BC-8 and in the definition of market)

      "Securities" means shares or bonds issued by shareholding companies, government debt instruments and the following financial instruments:

      (a) Shares in companies and other securities equivalent to shares in companies or other entities, and depositary receipts in respect of shares;
      (b) Bonds or other forms of debt, including depositary receipts in respect of such securities;
      (c) Warrants;
      (d) Units, rights or interests (however described) of the participants in a collective investment scheme;
      (e) Options, futures and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
      (f) Options, futures and any other derivative contract relating to commodities that can be physically settled;
      (g) Units to Real Estate Investment Trusts (REITs);
      (h) Index tracking products including Islamic indices;
      (i) Any other financial instrument approved as a financial instrument by the CBB for the purpose of trading such instrument on an exchange; and
      (j) Islamic securities, being those financial instruments that are Shari'a compliant.
      Amended: January 2011

    • Securitisation

      The financial engineering process for the creation and issuance of Sukuk, where:

      (a) Payment of face value and income is derived from the cash flows generated by the securitised assets, or by the pool of assets that underlie the issuance of the Sukuk; and
      (b) Legal or beneficial ownership of the underlying assets is transferred to the investors in the form of Sukuk.
      Added: January 2015

    • Self-Regulatory Organisation(s) or (SROs)

      "Self-Regulatory Organizations (SROs)" means any organisation licensed by the CBB under Volume 6 of the Markets and Exchanges (MAE) Module, or the Clearing, Settlement and Central Depository (CSD) Module, or any other organisation recognised as an SRO by the CBB.

      Added: January 2011

    • Senior Manager/Management

      Refers to individuals occupying the position of CEO or head of function.

    • Service level agreement

      An agreement forming part of the Outsourcing Agreement between the outsourcing service provider and the bank that outlines the standards of service to be provided by the outsourcing service provider.

    • Shareholders

      a) In relation to a share which is represented by a bearer certificate, the person who holds the certificate; b) in relation to a share that is not represented by a bearer certificate, the person whose name is entered on the register in relation to the share.

    • Shares

      A share or stock in the share capital of an enterprise, whether incorporated or unincorporated, but excluding units in collective investment undertakings.

    • Shari'a board or shari'a supervisory board

      An independent body of specialized jurists who, collectively, are entrusted with the duty of directing, reviewing and supervising the activities of an Islamic financial institution in order to ensure that they are in compliance with Islamic Shari'a rules and principles.

    • Shari'a compliant financial instruments

      Any of the following instruments, that are Shari'a compliant:

      (a) Transferable securities;
      (b) Money market instruments;
      (c) Units in collective investment undertakings;
      (d) Interests in real estate property;
      (e) Certificates representing certain Shari'a compliant securities; and
      (f) Rights or interests in financial instruments.
      Amended: January 2011

    • Shari'a compliant financial Instruments Trader

      A person who is engaged in buying or selling Shari'a compliant financial instruments.

    • Shari'a compliant money-market instruments

      Those classes of instruments which are normally dealt in on the money market, that are endorsed as compliant with Shari'a principles.

    • Shari'a Supervisory Board

      A Board of Shari'a experts appointed to review a bank's compliance with the Shari'a, with respect to its operations.

    • Small Business Deposits

      Deposits that are considered as having similar characteristics to retail accounts, provided the total aggregated funding raised from one small business customer is less than BHD 500,000 (on a consolidated basis where applicable).

      Added: October 2018

    • Soft dollar agreement (as referred to in Chapter BC-9)

      An agreement in any form under which an Islamic bank licensee receives goods or services in return for investment business put through or in the way of another person.

      Added: January 2011

    • Specialised licensee(s)

      A person licensed under Volume 5 of the CBB Rulebook.

      Added: April 2011

    • Spot transactions

      A foreign exchange transaction in which each party promises to settle the transaction two days after the transaction date.

    • Stable Deposits

      Amounts of the deposits that are fully insured by a deposit insurance scheme which represents a portion from the deposits in the transactional accounts (e.g. accounts where salaries are automatically deposited), as per the provisions of those regulations.

      Added: October 2018

    • Subsidiary(ies)

      An entity, including an unincorporated entity such as a partnership that is controlled by another entity (known as the parent entity).

      Amended: April 2015
      Added: January 2015

    • Subsidiary undertaking

      A company or other enterprise controlled by another company or enterprise (the parent or the holding company).

    • Succession plan

      A plan developed by a bank that would lay down the bank's strategy with respect to succession of various senior management or board positions within the bank.

    • Suspicious Transaction

      Any transaction or dealing which raises in the mind of a person involved, any concerns or indicators that such a transaction or dealing may be related to money laundering or terrorist financing or other unlawful activity. Examples of suspicious transactions are set out in Appendix FC 3.

    • Swap(s)

      A financial contractual agreement between two parties to exchange (swap) a set of payments that one party owns for a set of payments owned by the other party.

      Added: January 2011