Chapter 8 Chapter 8 The Disciplinary Board
Article 73
The Exchange shall have a disciplinary board with powers to decide on any violation to the Law, Internal Regulation and resolutions which regulate the Exchange, and any violation affecting the conduct of business and discipline in the Exchange.
The disciplinary board shall comprise of three members to be appointed by a resolution issued by the Chairman of the Board. The disciplinary board shall be presided over by the Director of the Exchange and may impose the following penalties:
1— Reminder.2— Warning.3— Confiscation of all or part of the broker's guarantee.4— Suspension of trading by violating companies for a period not exceeding four months.5— Striking off the listed companies and unlisted companies, or the transfer of a listed company into an unlisted company whose securities are admitted for trading.6— Suspension of brokers and market makers from work for a period not exceeding four months.7— Cancellation of brokers, market makers, and any other person with a similar status membership.Deliberations of the disciplinary board shall be confidential. Resolutions shall be adopted by majority vote and the concerned parties shall be notified by registered mail, accompanied by an acknowledgment.
Article 74
The Control and Investigation Unit shall receive applications and complaints which contain the alleged facts involving members, listed companies and unlisted companies whose securities are admitted for trading on the Exchange, and which constitute a violation to the Bahrain Stock Exchange's Law, Internal Regulation and resolutions which regulate the Exchange, and which affect the proper conduct of business therein, or the principles and standards of practicing the brokerage profession.
Article 75
Applications or complaints shall, upon receipt, be recorded in a special register with serial numbers, commencing on the first day of the Gregorian year and ending on the last day thereof.
Article 76
The Control and Investigation Unit shall submit applications and complaints to the Director of the Exchange. These applications and complaints shall either be decided upon by the Director, or returned to the Control and Investigation Unit to begin the investigation process required for making a decision on the alleged facts contained in the application or complaint.
Article 77
The Control and Investigation Unit shall, upon referral of any matter to it by the Director, serve summons on the parties and their witnesses to hear their statements on the matter and write any statements in a record prepared for this purpose.
Article 78
The Control and Investigation Unit shall, upon completion of an investigation, submit to the Director its written opinion on the result of the investigation, and whether the issue constitutes a violation warranting referral to disciplinary proceedings or not.
Article 79
The Director shall refer the violation record to the disciplinary board if an investigation has been carried out, or he shall, where the application has been referred by the Board of Directors for investigation, submit the matter to the Board to decide thereon, or refer the matter to the disciplinary board.
Violations referred to disciplinary proceedings shall be raised in the form of a statement, which shall contain the name and place of residence of the defendant, date of the violation, and a summarized description of the violation and the available evidence. The disciplinary board shall not consider any violation unless it is submitted in accordance with this method.
Article 80
The record of the violation referred to in the preceding Article shall be submitted to the Chairman of the disciplinary board, for fixing a date for the hearing by issuing an order to that effect. The Control and Investigation Unit shall serve summons on the defendant, requiring him to appear on the date fixed for the hearing.
Article 81
A clerk shall attend the hearing of the disciplinary board and the appellate disciplinary board, in order to keep the record under the supervision of the Chairman thereof. The record shall contain names of members of the board or appellate board, date, time and place of hearing, names of parties who appear, or their representatives, all proceedings carried out in the hearing, and any statements and applications made by the parties. The Chairman and the clerk shall sign the record.
Article 82
The defendant shall appear on the date fixed for hearing the violation, and the board should enable him to state his defense in respect thereof, after notifying him of the violation and of the supporting evidence.
Article 83
If the defendant does not appear at the sitting fixed for hearing the violation, the board shall, if it is proved that the summons was duly served, proceed to hear and decide on the violations in his absence.
Article 84
Records of investigations carried out prior to the disciplinary proceedings shall be attached to the violation record. The disciplinary board, if not satisfied with the investigation, shall carry out its own investigation.
Article 85
The board shall, for the proof of any facts, rely on the evidence obtained from the investigations carried out in respect of the facts which constitute the violation, and shall, at its absolute discretion, prefer one item of evidence to the other. The board shall formulate its valuation according to its own satisfaction. The board must not base its decision on the personal knowledge of its members.
Article 86
The members of the board shall deliberate on the decision before issuing it. Every member shall express his opinion in secret, and the decision shall be taken by majority vote.
Article 87
The decision passed by the disciplinary board must be in writing. It shall contain a review of the violation, statements and defense of the offender, proceedings carried out, reasons for the decision and the decree thereof, and date and place of issue of the decision. The draft decision shall be signed by the Chairman and members of the disciplinary board.
Article 88
The Chairman of the disciplinary board shall pronounce the decision in a public hearing. The draft decision shall be filed in the violation record, after pronouncement thereof.
Article 89
The draft decision shall be filed in the violation record. Copies shall not be delivered to the concerned parties, however any party may, at his request, peruse the draft award.
Article 90
Any concerned party may obtain a copy of the disciplinary decision after the signing thereof by the Chairman of the disciplinary board and the clerk, provided that it shall be delivered to the person personally, or to an attorney duly appointed by a specific power of attorney, and subject to the approval of the Chairman of the disciplinary board and payment of the prescribed fee.
Article 91
The Control and Investigation Unit shall, in the case of the defendant's non-appearance in the hearing, notify him of the decision within five days from the date of issue thereof.
Article 92
Service of all documents, decisions and notices relating to the disciplinary proceedings shall be effected by registered mail.
