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  • BC-8.1 BC-8.1 Introduction

    • BC-8.1.1

      This Chapter applies to all retail banks in Bahrain.

      October 07

    • BC-8.1.2

      Investors purchasing securities listed on any licensed exchange 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 CBB Law, the Rulebook of the licensed exchange, any rules and regulations issued pursuant to such Law, Rulebook and this Module. The System applies to equities in companies listed on any licensed exchange. 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.

      Amended January 2011
      October 2007

    • BC-8.1.3

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

      Amended January 2011
      October 2007

    • General Criteria

      • BC-8.1.4

        Only retail banks will be permitted as participating banks for the System. Participating banks must each receive the prior general written approval of the CBB in order to take part in the System. The CBB will notify the licensed exchange of the identity of participating banks. The CBB's approval may be withdrawn at its discretion.

        Amended January 2011
        October 2007

      • BC-8.1.5

        SRO members who are not retail banks will not be permitted to act as lenders for the System.

        Amended January 2011
        October 2007