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  • CSD-1.3 CSD-1.3 Withdrawal of License or Cessation of Business

    • Voluntary Surrender

      • CSD-1.3.1

        A clearing house or central depository which intends to cease operating must apply to the CBB to surrender its license.

      • CSD-1.3.2

        Any objections received from any user, member or depository participant of the clearing house or central depository shall be considered by the CBB prior to issuing its consent for the surrender of license or cessation of business of the licensee.

      • CSD-1.3.3

        The CBB may, subject to paragraph CSD-1.3.2, cancel the license if it is satisfied that the licensed clearing house or licensed central depository has ceased operating and that there are no pending obligations of the licensed clearing house or licensed central depository or contracts traded.

        Amended: July 2016
        Amended: April 2016

      • CSD-1.3.4

        The licensed clearing house or licensed central depository shall publish a notice of its intention to cease to operate its market in 2 daily newspapers, one in Arabic and the other in English, in Bahrain.

        Amended: April 2016

      • CSD-1.3.5

        The notice referred to in rule CSD-1.3.4 shall be subject to the approval of the CBB and shall be published at least 60 days prior to the cessation taking effect.

    • Cancellation of License

      • CSD-1.3.6

        The CBB may cancel any license held by a licensed clearing house or licensed central depository if:

        (a) There exists a ground under which the CBB may refuse an application;
        (b) The licensed clearing house or licensed central depository is in the course of being wound up or otherwise dissolved;
        (c) The licensed clearing house or licensed central depository contravenes:
        (i) Any condition or restriction applicable in respect of its license;
        (ii) Any direction issued to it by the CBB;
        (iii) Any provision in this Module; or
        (iv) Any other CBB law, rule or regulation;
        (d) The licensed clearing house or licensed central depository operates in a manner that is in the opinion of the CBB, contrary to the interests of the public or user; or
        (e) Any information or document provided by the licensed clearing house or licensed central depository to the CBB is false or misleading.
        Amended: April 2016

      • CSD-1.3.7

        The CBB may not, subject to paragraph CSD-1.3.6, cancel any license that was granted to a licensed clearing house or licensed central depository without giving the opportunity to be heard.

        Amended: April 2016

      • CSD-1.3.8

        The CBB may cancel a license that was granted to a licensed clearing house or licensed central depository on any of the following grounds without giving an opportunity to be heard:

        (a) The licensed clearing house or licensed central depository is in the course of being wound up or otherwise dissolved;
        (b) A receiver, a receiver and manager, or an equivalent person has been appointed, in relation to or in respect of any property of the licensed clearing house or licensed central depository; or
        (c) The licensed clearing house or licensed central depository has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.
        Amended: April 2016

      • CSD-1.3.9

        A licensed clearing house or licensed central depository shall be deemed to have ceased to operate if:

        (a) It has ceased to offer its services as a licensed clearing house or licensed central depository for more than 30 days, unless it has obtained the prior approval of the CBB to do so; or
        (b) It has ceased to offer a licensed clearing house or licensed central depository services under a direction issued by the CBB.
        Amended: April 2016

      • CSD-1.3.10

        Any cancellation of a license of a licensed clearing house or licensed central depository shall not operate so as to:

        (a) Avoid or affect any agreement, transaction or arrangement entered into by a licensed clearing house or licensed central depository, whether the agreement, transaction or arrangement was entered into before or after the revocation of the license; or
        (b) Affect any right, obligation or liability arising under such agreement, transaction or arrangement.
        Amended: April 2016

      • CSD-1.3.11

        Where the CBB cancels or amends a license of a licensed clearing house or licensed central depository, notification to the licensed clearing house or licensed central depository and an appeal against such a decision shall be governed by Article 48 of the CBB Law.

        Amended: July 2016
        Amended: April 2016

    • Publication of the Decision to Grant, Cancel or Amend a License

      • CSD-1.3.12

        The CBB shall publish its decision to grant, cancel or amend a license in the Official Gazette as well as in 2 local newspapers, one published in Arabic and the other in English in Bahrain.

        Amended: July 2017

      • CSD-1.3.13

        For the purpose of Paragraph CSD-1.3.12, the cost of publication of this notice must be borne by the clearing house or central depository.

        Added: July 2017

      • CSD-1.3.14

        The CBB may also publish its decision on such cancellation or amendment using any other means it considers appropriate, including electronic means.

        Added: July 2017