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  • Chapter 6 Chapter 6 Exchange Finance

    • Article 46

      The Exchange shall have an annual balance sheet, which should be prepared in accordance with commercial model. The Exchange's financial year shall commence on 1st January and end on 31st December of each year. However, the first financial year shall commence on the date of implementation of the Law in respect of the establishment of the Bahrain Stock Exchange, and shall end on the last day of December of the following year.

    • Article 47

      The Exchange's administration shall prepare the budget for revenue and expenses, which shall be approved by the Board at least three months prior to the commencement of the financial year.

    • Article 48

      The Exchange's income shall consist of the following:

      1— Fees imposed on the market.
      2— Revenue of services provided to the market.
      3— Proceeds from investment of the Exchange's funds.
      4— Proceeds of fines and penalties imposed, in accordance with the provisions of the Law and Internal Regulation of the Exchange.
      5— Loans and subsidies provided by the Government or any other party approved by the Board.
      6— Any other income approved by the Board.

    • Article 49

      The Exchange shall have one or more auditors from the chartered accountants registered with the Ministry of Commerce and Agriculture. The auditors shall be appointed and their remuneration shall be determined by a Resolution adopted annually by the Board. The auditors shall audit the accounts of the financial year for which they have been appointed.

      The auditors shall audit the balance sheet, income and expenditure accounts, and shall submit them to the Board, accompanied by their report, for approval within a maximum period of 3 months from the end of the Exchange's financial year.

    • Article 50

      The Exchange shall have a general reserve to which all surplus income realized by the Exchange in any financial year shall be credited. Disposal of such reserve shall be in accordance with the methods prescribed by the Board.

    • Article 51

      The Exchange's administration undertakes to manage expenses in accordance with the estimations stated in the provisions of the budget, and such expenditure proceedings shall be subject to procedures provided by the Financial Internal Regulation issued by the Board.

    • Article 52

      The Exchange's funds shall be utilized in the following manner:

      1— Funds shall be used for the development of the Exchange's systems, and to support the growth of the Exchange through the development of its technical and administrative systems, and by inviting a firm of experts to prepare studies and research, as required for the development of the Exchange's facilities, services and Internal Regulation.
      2— Investment of these funds in one of the low risk investment channels with a view to preserving these funds.
      3— Investment of these funds in the form of deposits in one or more banks, in accordance with the general principles laid down by the Board.
      4— To form reserves for the Exchange.
      5— Any other utilization, as determined by the Board.

    • Article 53

      The subscription fee for members and transfer agents shall be as follows:

      1— A one-off registration fee for individual members is: BD 500
      2— A one-off registration fee for corporate members is: BD 1,000
      3— An annual renewal fee for registration of individual members is: BD 250
      4— An annual renewal fee for registration of corporate members is: BD 500
      5— A one-off registration fee for transfer agents is: BD 500
      6— An annual renewal fee for transfer agents' firms is: BD 1,000

    • Article 54

      Local joint stock companies and exempt companies shall undertake to pay the following fees to the Exchange:

      1— A one-off registration fee of 0.001 of the share capital of each company, subject to a maximum of BD15,000 and a minimum of BD5,000.
      2— The annual listing and admission fees are as follows:
      a— A fee equivalent to 0.001 on the first BD10 million, or less of the company's share capital subject to a minimum of BD30,000.
      b— A fee equivalent to 0.0005 on amounts which exceed BD10 million, up to BD50 million.
      c— A fee equivalent to 0.00025 on amounts which exceed BD50 million of the company's share capital, subject to a maximum of BD20,000(1).

      (1) Amended by Ministerial Resolution No. (2/66) of 1999.

    • Article 55

      The Exchange shall be entitled to the following commissions:

      1— Commission at the rate of 20% on the transactions performed on the Trading Floor(1).
      2— Commission prescribed for transactions exempted from trading on the Exchange:
      a— An equivalent amount to brokers' commission, which shall be one Bahraini Dinar up to the maximum of BD200, on dealing cases stipulated in clause (8, 9) Article (36) of the Internal Regulation.

      The commission for case No. (8) shall be received from the two parties of the trade, and the commission for the case No. (9) shall be received from the transferee.
      b— An equivalent amount to brokers' commission for the case stipulated in clause (5, 10 and 11) Article 36 of the Internal Regulation. In the case No. (5), commission shall be received from the transferee and from the two parties of the trade in the case (10 and 11).
      c— A fixed commission of five Bahraini Dinars for the case stipulated in Clauses (3, 4, 6, 7, 12, 14, 15 and 16) Article 36 of the Internal Regulation.
      d— A fixed commission of one Bahraini Dinar for the case stipulated in the clause No. (13) Article 36 of the Internal Regulation (2).
      3— The Exchange may collect a commission from purchasers. A Resolution in this respect shall be passed by the Board.

      (1) Amended by Ministerial Resolution No. 1/2000.

      (2) Amended by Ministerial Resolution No. 8/1993 in respect of cases exempted from trading.