[C] [C]
Capital Market Licensee
A person licensed under Volume -6 of the CBB Rulebook.
Added: July 2021Capital Market Service Provider (CMSP)/Capital Market Advisory Service Provider
Means any person licensed or authorised or involved in providing by itself or as agent, regulated crypto-asset service or any activity specified under Article 80 of the CBB Law and includes
SROs , their members and companies listed onlicensed exchanges and crypto-asset licensees.Amended: January 2020
Amended: July 2016
Amended: January 2014
Added: July 2011Capitalisation issue
An
allotment of furthersecurities to existingsecurities holders, credited as fully paid-up out of theissuer's reserves or profits, in proportion to their existing holdings, or otherwise not involving any monetary payments.Added: January 2014Cash purchases
For the purpose of Module TMA, cash purchases include contracts or arrangements where the consideration consists of a debt instrument capable of being paid off in less than 3 years.
Added: July 2011CBB licensee(s)
CBB licensees are persons holding a license from the CBB to undertake a regulated service. Different license categories apply, depending on the types of regulated services undertaken. Each license category is subject to its own Rulebook Volume (e.g. Volumes 1 and 2 forconventional bank licensees andIslamic bank licensees , and Volume 4 forinvestment firm licensees ).Central depository
Means a central securities depository being any person who is eligible and licensed by the CBB to provide custody services, maintain a central securities register and accounts of central depository participants and evidence and transfer of ownership.
Added: July 2011Chief executive/Chief executive Officer (CEO) or General Manager
Means a person who is responsible for the conduct of the licensee (regardless of actual title). The Chief Executive or General Manager must be resident in Bahrain. This person is responsible, alone or jointly, for the conduct of the whole of the firm.
Amended: July 2016
Amended: January 2012
Added: July 2011(CIU) manager(s)
[This definition has been moved to Volume 7 in April 2012].
(CIU) participant(s)
[This definition has been moved to Volume 7 in April 2012].
Class(es)
Class means
securities that have similar features. Stocks andbonds are the two mainclasses ; they are subdivided into variousclasses — for example, mortgage bonds and debentures, issues with different rates of interest, common or preferred stock, or Class A and Class B common. The differentclasses in a company's capitalisation are itemised on its balance sheet.Added: January 2014Clearing member
Means a person who is a member of a
licensed clearing house who clear and settle transactions in alicensed clearing house .Amended: July 2016
Added: July 2011Clearing house
Means any person who is eligible and licensed by the CBB and acts as the central counterparty in making payments or deliveries or both in connection with transactions in securities, or who provides facilities for comparison of data in respect of the settlement of securities transactions, to reduce the number of settlements of securities transactions, or for allocation of securities settlement responsibilities.
Added: July 2011Client(s)
Means a person with or for whom a licensed member conducts or intends to conduct
regulated activities .Amended: July 2016
Added: July 2011Client Assets
Means securities, money or other assets received or retained by, or deposited with a member or a crypto-asset licensee in the course of its business for which it is liable to account to its client, and any securities, money or other assets accruing therefrom.
Added: January 2020Client complaints
For the purposes of this Module, a client complaint includes: "any complaint in relation to the provision of services by a
CMSP in which the client alleges that he has suffered, or is likely to suffer financial prejudice as a result of the member orCMSP :(a) Contravening or failing to comply with any instruction given by the client, or any agreement or mandate entered into with the client;(b) Contravening or failing to comply with the rules and the directives;(c) Acting dishonestly, negligently or recklessly; or(d) Treating the client unreasonably, or unfairly."Added: July 2011Client information
Means transaction information relating to:
(a) A named client of a licensed member; or(b) A group of clients, from which the name of a client can be directly inferred from a licensed member.Added: July 2011Client Money
Money, of any currency, that a licensee receives from or on behalf of a client in the course of carrying on securities business or regulated crypto-asset services (as the case may be) is client money except for money which is to be:
(a) used to defray the licensee’s brokerage and other charges which are lawfully due to the licensee;(b) paid to the client or in accordance with the client’s written direction; and(c) money which is to be used to reduce the amount owed by the client to the licensee.Added: January 2020CMSD
Means the Capital Markets Supervision Directorate of the Central Bank of Bahrain.
Added: July 2011Closed-ended funds
Closed-ended funds areCIUs with a limited number ofholdings . Where the fund vehicle is a company,holdings can take the form of shares. Newholdings are rarely issued after the fund is launched and are not normally redeemable until the fund liquidates. Typically an investor can acquire or dispose ofholdings in aclosed-ended fund by buying or selling them on a secondary market, from a market intermediary or other investor, rather than by dealing with theCIU itself.Collective Investment Undertaking(s) ('CIUs')
Collective investment undertakings ('CIUs') are undertakings:(a) The sole object of which is the collective investment of capital raised from the public infinancial instruments or other assets and which operates on the basis of risk-spreading; and(b) Theholdings of which are re-purchased or redeemed, directly or indirectly, out of those undertakings' assets.[This definition has been amended as CIUs have been moved to Volume 7 in April 2012].
Amended: April 2012Connected fund manager and connected principal trader
For the purpose of Module TMA, a fund manager or principal trader will be connected with an offeror or the offeree company, as the case may be, if the fund manager or principal trader controls, is controlled by, or is under the same control as:
(a) An offeror;(b) The offeree company;(c) Any bank or financial or other professional adviser (including a stockbroker) to an offeror or the offeree company; or(d) An investor in a consortium formed for the purpose of making an offer.Added: July 2011Connected party transactions
Means a transaction between the
CMSP and a 'connected person'.Added: July 2011Connected persons
i. In relation to an individual means:(a) The individual's spouse and his/her son, adopted son, stepson, daughter, adopted daughter, step-daughter, father, step-father, mother, step-mother, brother, step-brother, sister or step-sister, under his/her guardianship or control; or(b) A firm or corporation in which the individual or any of the persons mentioned in sub-paragraph (a) has control of not less than 10% of the voting power in the firm or corporation, whether such control is exercised individually or jointly;(c) [This was deleted in January 2022].ii. In relation to a firm or corporation means another firm or corporation in which the first-mentioned firm or corporation has control of not less than 10% of the voting power in that other firm or corporation.Amended: January 2022
Added: July 2011Consideration issue
An issue of
securities as consideration, other than cash, in a transaction or in connection with a takeover or merger or the division of anissuer .Added: January 2014Control
Unless the context otherwise requires, control shall be deemed to mean a holding, or aggregate holdings, of 30% or more of the voting rights of a company, irrespective of whether that holding or holdings gives de facto control.
Added: July 2011Controlled functions
Means a function carried on by an approved person in relation to a
CMSP that requires prior CBB approval, as per the relevant licensing Module.Added: July 2011Controlling shareholder
Means any shareholder who holds 10% or more of the share capital or is able to exercise (or control the exercise of) 10% or more of the voting power in the company.
Added: July 2011Conventional bank licensee(s)
A bank licensed by the CBB under Volume 1 of the CBB Rulebook, and generally operating according to conventional finance principals (as opposed to operating in accordance with Islamic finance principles).
Convertible securities
Unless the context otherwise requires, convertible securities means securities convertible or exchangeable into other types of securities, or into another class of the same securities. The conversion can also take place within the same securities issuer's company and/or group, or in relation to another company or group.
Amended: January 2014
Added: July 2011Correspondent Account Services
Means the provision of services between a Capital Market Service Provider and a respondent financial institution, in relation to any regulated activity as stipulated by the CBB, whether for that respondent financial institution as principal or for that respondent financial institution’s customers.
Added: January 2020Crowdfunding Platform
Means the online platform operated by a
crowdfunding platform operator .Added: October 2017Crowdfunding Platform Operator
Means a person licensed by the CBB under the CBB Rulebook Volume 5 in respect of operating a
crowdfunding platform .Added: October 2017Crypto-asset
Means a cryptographically secured digital representation of value or rights which may be transferred and stored electronically, using distributed ledger technology or similar technology but does not include central bank issued digital currencies. Most common forms of crypto-asset are:
i. Payment tokens: Payment tokens are virtual tokens which can be digitally traded and be used for acquiring goods or services or for investment purposes. Payment tokens give rise to no claims on their issuer and are usually decentralised. The most prominent example is Bitcoin.ii. Utility tokens: Utility tokens are tokens that are intended to provide access to a specific application or service.iii. Asset tokens: Asset tokens represent assets such as a debt or equity claim on the issuer. Asset tokens promise, for example, a share in future company earnings or future capital flows. In terms of their economic function, therefore, these tokens are analogous to equities, bonds or derivatives. Tokens which enable physical assets to be traded on the blockchain also fall into this category.iv. Hybrid Tokens: Hybrid tokens are those that have features of one or more of the other three types of tokens.Amended: April 2023
Added: April 2019Crypto-asset exchange
A center or network established for the purpose of trading or exchanging of crypto-assets, which operates by matching orders in the normal course of business.
Added: April 2019Crypto-asset license
A license issued by the CBB under the crypto-asset Module of Rulebook Volume 6
Added: April 2019Crypto-asset licensee
A person licensed by the CBB under the Crypto-asset Module of Rulebook 6.
Added: April 2019Custodian(s)
Means a person who is licensed to undertake depository participant or clearing member services as a member of a
licensed clearing house or licensed central depository, and is mandated to hold and safeguard thefinancial instruments and other assets of a person, such as acollective investment undertaking (CIU).Amended: July 2016
Amended: July 2011Cyber Security Incident
An observable occurrence indicating a possible breach in the systems, network and operating environment.
Added: April 2019Cyber Security Risk
The combination of the probability of an incident occurring within the realm of a licensee's information assets, systems and operating environment.
Added: April 2019Cyber Security Risk Resilience
The ability to anticipate, absorb, adapt to, rapidly respond to, and recover from disruption caused by a cyber-attack.
Added: April 2019Cyber Security Threat
A circumstance or incident with the potential to intentionally or unintentionally exploit one or more vulnerabilities in a licensee's information assets, systems and operating environment.
Added: April 2019