Back Custom print Link Text Only Rich Text Print

  • Non-market Price Transactions

    • BC-2.7.8

      Investment firm licensees must not enter into a non-market price transaction in any capacity, with or for a client, if it has reasonable grounds to suspect that the client is entering into the transaction for an illegal or improper purpose.

    • BC-2.7.9

      For the purposes of Paragraph BC-2.7.8, a non-market price transaction is one where the price paid by the investment firm licensee, or its client, differs from the prevailing market price. With respect to transactions in financial instruments traded on the Bahrain Stock Exchange, licensees are reminded that in Bahrain the law prohibits off-market transactions.

      Amended: January 2007

    • BC-2.7.10

      For the purposes of Paragraph BC-2.7.8, examples of improper purposes for transactions include:

      (a) The perpetration of a fraud;
      (b) The disguising or concealment of the nature of a transaction or of profits, losses or cash flows;
      (c) Transactions which amount to market abuse;
      (d) High-risk transactions under the Anti Money Laundering Regulations; and
      (e) "Window dressing", in particular around the year end, to disguise the true financial position of the person concerned.
      Amended: January 2007

    • BC-2.7.11

      Rule BC-2.7.8 does not apply to a non-market-price transaction if it is subject to the rules of a recognised investment exchange.