Legal Basis
TMA-A.1.7
Article 3 of the Central Bank of Bahrain and Financial Institutions Law (the "CBB Law") states that the objectives of the CBB are to, inter alia, develop the financial sector and enhance confidence therein and protect the interests of depositors and customers of financial institutions, and enhance the Kingdom's credibility as an international financial centre.
TMA-A.1.8
Parts 2 and 4 of the CBB Law empower the CBB to lay down rules for licencees, listed companies and others who undertake capital market and/or securities-related activity in the Kingdom;
TMA-A.1.9
Article 38(a) of the CBB Law empowers the Governor of the CBB to issue Directives to ensure the implementation of the CBB Law, any regulations issued in accordance with that Law and the achievement of the objectives of the CBB.
TMA-A.1.10
These rules are issued by way of a legally-binding Directive.
TMA-A.1.11
Article (3) of Decree No. 64 of 2006 with respect to promulgating the Central Bank of Bahrain and Financial Institutions Law (CBB Law) states that the provisions of the Commercial Companies Law (CCL) issued by Decree No. 21 of 2001 shall apply on all matters that are not stipulated in the CBB Law.
TMA-A.1.11A
This Module should be read in conjunction with Resolution No.(54) of 2023 with respect to issuing a Regulation on the Rules and Procedures for Mergers and Acquisitions of Shares of Companies listed on Stock Exchanges Licensed by the Central Bank of Bahrain (as amended from time to time).
Added: January 2024TMA-A.1.12
Following is also list of relevant Articles of the CBB Law that apply to persons covered by Module TMA:
Circular/ other references Provision Subject CBB Law 2006 Article 99–100 and Article 105 Restrictions of publishing market information and the use and disclosure of insider information. CBB Law 2006 Article 167 Penalty for violating Article 100. CBB Law 2006 Article 106 The offence of market manipulation. CBB Law 2006 Article 168 Penalty for violating Article 106. CBB Law 2006 Article 163 Penalty for concealing documents and information or providing false or misleading information or statements. CBB Law 2006 Article 128 Imposing restrictions on licensees and listed companies. CBB Law 2006 Article 132 Public censure on breaches committed by licensees and listed companies. CBB Law 2006 Article 52 –56 Nature and limits of control, procedures that must be undertaken and the regulations and conditions for granting approval of control CBB Law 2006 Article 162 Penalty for violating Article 52–58.
