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  • Resolution No. (2) of 2002 in Respect of the Provision of Custodial Services through the Central Depository System at the Bahrain Stock Exchange

    The Chairman of the Exchange's Board of Directors:

    After perusal of Decree Law No. (4) of 1987, pertaining to the establishment and organization of the Bahrain Stock Exchange,
    And Decree Law No. (23) of 1973, in respect of establishment of the Bahrain Monetary Agency and its amendments,
    And the Minister of Commerce and Agriculture's Resolution No. (13) of 1988, regarding the issuance of the Exchange's Internal Regulation and its amendments,
    And the Chairman of the Bahrain Stock Exchange's Resolution No. (3) of 2000 pertaining to the Clearing, Settlement, Central Depository and Registry Rules,
    And the Minister of Commerce and Agriculture and Chairman of Bahrain Stock Exchange Resolution No. (2) of 1995, pertaining to the services provided by the brokerage firms at the Bahrain Stock Exchange,
    And upon the submission of the Director of the Bahrain Stock Exchange,
    And the approval issued by the Bahrain Stock Exchange's Board of Director at the its meeting No. (3/4) of 2002.

    RESOLVED AS FOLLOWS:

    • Article (1)

      Custodian: shall mean the participating member of the Clearing, Settlement and Central Depositary System other than the brokerage company licensed by the Minister of Commerce and Agriculture's Resolution No. (2) of 1995, to provide the services of custody, transfer of securities' and settlement of commitments resulting from trading on behalf of his clients.

    • Article (2)

      Companies other than brokerage companies licenced to provide custodial services pursuant to the Minister of Commerce and Agriculture's No/ 2/1995 may be admitted in the membership of Central Depository on the Exchange according to the following conditions:

      1- The company should be a Bahraini joint stock company, a limited liability company, a branch of a foreign company or an exempted company licensed to operate in Bahrain.
      2- The company's objects clause should include the provision of custodial services.
      3- The company shall undertake the following:
      a- To separate its assets and accounts from the securities of client's to whom it provide custodial services.
      b- To provide the custodial services in accordance with the standard agreement for the provision of custodial service approved by the Exchange.
      c- To implement the provisions of this Resolution and abide by the rules, regulations and procedures related to the Clearing, Settlement and Central Depositary issued by the Exchange from time to time.
      4- The company should have not been convicted for any crime of money laundering or mismanagement of its client's accounts or funds.
      5- Any other conditions stipulated by the Exchange.

    • Article (3)

      The company should present to the Exchange a formal application for admission in the Central Depositary membership for the provision of custodial services together with the following attachments:

      1- A copy of the Memorandum and Articles of Association.
      2- A copy of the Commercial Register Certificate.

      Banks and financial institution under the supervision of the Bahrain Monetary Agency must attach with the above documents the Agency's approval for the provision of custodial services..

    • Article (4)

      The company should pay the following fees:

      1- Registration fee of BD1000 (Bahraini Dinar one thousand) to be paid once.
      2- Annual subscription fee of BD500 (Bahraini Dinar five hundred).

    • Article (5)

      The obligations referred to in Clause (3) of Article (2) of this Resolution shall be applicable to the brokerage companies licensed to provide custodial services in accordance with the Minister of Commerce and Agriculture's, Resolution No. 2/1995 with respect to the services provided by the brokerage services at the Bahrain Stock Exchange.

    • Article (6)

      The Director of Bahrain Stock Exchange shall implement the provisions of this Resolution, which shall take effect from the date of issuance and shall be published in the Official Gazette.

      Minister of Commerce and Industry and
      Chairman of the Bahrain Stock Exchange

      Issued on 8 Thu Al Higgah 1422 H
      Corresponding to 20 February 2002