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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 2018Security(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 othersecurities 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 suchsecurities ;(c)Warrants ;(d) Units, rights or interests (however described) of theparticipants 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) Islamicsecurities , being those financial instruments that are Shari'a compliant.Amended: January 2011Securitisation
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 2015Self-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 anSRO by the CBB.Added: January 2011Senior 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 incollective 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 2011Shari'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 2018Soft 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 2011Specialised licensee(s)
A person licensed under Volume 5 of the CBB Rulebook.
Added: April 2011Spot 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 2018Subsidiary(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 2015Subsidiary 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