• DRA-B DRA-B Scope of Application

    • DRA-B.1 DRA-B.1 Scope of Application

      • Scope

        • DRA-B.1.1

          This Module shall apply to complaints and disputes relating to:

          (a) Any conduct or behaviour occurring within Bahrain; or any transaction or expected transaction done by or on behalf of any person(s) within Bahrain in relation to securities offered, issued or listed in Bahrain or elsewhere;
          (b) Any conduct or behaviour occurring outside Bahrain or any transaction or expected transaction done by or on behalf of any person(s) outside Bahrain in relation to securities offered, listed or issued in Bahrain;
          (c) Any conduct or behaviour occurring within Bahrain, or any transaction or expected transaction done by or on behalf of any person(s) within Bahrain in relation to:
          (i) Futures contracts, whether traded on a futures market in Bahrain or elsewhere; or
          (ii) Leveraged foreign exchange trading contracts, whether in Bahrain or elsewhere; and
          (d) Any conduct or behaviour occurring outside Bahrain; or any transaction or expected transaction done by or on behalf of any person(s) outside Bahrain in relation to:
          (i) Futures contracts traded on a futures market in Bahrain;
          (ii) Leveraged foreign exchange trading contracts in Bahrain; or
          (iii) Leveraged foreign exchange trading contracts that are accessible from Bahrain.
          July 2010

        • DRA-B.1.2

          This Module contains the CBB's Directive relating to dispute resolution, investors' complaints handling and arbitration mechanism and is issued under the powers available to the CBB under Article 38 of the CBB Law. The Directive under this Module is applicable to all Capital Market Service Providers (CMSPs), market participants and relevant persons, including but not limited to issuers of securities or any person acting on their behalf, licensed exchanges, licensed market operators, licensed clearing houses, depositories, members of SROs, investment firms, collective investment undertakings, business trusts, listed companies, any person acting for or on behalf of listed companies, shareholders of listed companies, share registrars, lead managers, underwriters, professional advisors, listing agents, auditors, financial analysts and any other person who engages or encourages others to engage in any acts of commission or omission covered by the scope of this Module, irrespective of whether such person is a market participant or not. These rules are issued by way of a legally-binding Directive.

          July 2010

    • DRA-B.2 DRA-B.2 [This Section was deleted in April 2020]

      Deleted: April 2020
      Added: July 2010

      • DRA-B.2.1

        "Arbitration Cell" means a division or employee(s) of an SRO designated and authorized to receive petitions, coordinate and assist in the administration of arbitrations in terms of Chapter 3 of this Module.

        July 2010

      • DRA-B.2.2

        "Capital Market Service Provider" (hereinafter referred to as CMSP) means any person licensed, or authorised or involved in providing any activity specified under Article 80 of the CBB Law and includes a member of an SRO.

        July 2010

      • DRA-B.2.3

        "CMSD" means the Capital Markets Supervision Directorate of the Central Bank of Bahrain.

        July 2010

      • DRA-B.2.4

        "Client 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 or CMSP:

        (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".
        July 2010

      • DRA-B.2.5

        "Disciplinary Action Cell" means a division or employee of an SRO designated and authorized to receive notification of a breach of rules of an SRO and to coordinate and assist in the administration of disciplinary proceedings in Chapter 4 of this Module.

        July 2010

      • DRA-B.2.6

        "Person" means unless the context requires otherwise, a natural or legal person.

        July 2010

      • DRA-B.2.7

        "Securities" means shares or bonds issued by shareholding companies, government debt instruments and the following financial instruments:

        (a) Shares in companies and other securities 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 such securities;
        (c) Warrants;
        (d) Units, rights or interests (however described) of the participants 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) Islamic securities, being those financial instruments that are Shari'a compliant.
        July 2010

      • DRA-B.2.8

        "Self-Regulatory Organizations (SROs)" means any organization licensed by the CBB under the Markets and Exchanges (MAE) Module, or the Clearing, Settlement and Central Depository (CSD) Module, or any other organization recognized as an SRO by the CBB.

        July 2010