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  • Resolution No. (2) of 1995 in Respect of Services Offered by Brokerage Companies on the Bahrain Stock Exchange

    The Minister of Commerce and Agriculture and Chairman of the Exchange's Board of Directors:

    After perusal of Amiri Decree No. (4) of 1987, pertaining to the establishment and organization of the Bahrain Stock Exchange;
    And the Minister of Commerce and Agriculture's Resolution No. (13) of 1988, concerning the issuance of the Bahrain Stock Exchange's Internal Regulations and its Amendments;
    And upon the proposal of the Bahrain Stock Exchange's Board of Directors;

    RESOLVED AS FOLLOWS:

    • Article One

      Securities brokerage companies which are licensed in accordance with the rules and conditions prescribed in the Bahrain Stock Exchange's Internal Regulation, may perform the following services:

      1. To provide brokerage services in local, Gulf Cooperation Council (GCC) States and international securities listed on the Bahrain Stock Exchange.
      2. To deal directly for their own account in listed securities, in accordance with the Exchange's rules.
      3. To offer consultancy services, or to deal on behalf of clients, whether local or foreigners, on the Bahrain Stock Exchange.
      4. To offer consultancy services, or to deal on behalf of clients, whether local or foreigners, on other bourses outside Bahrain.
      5. To offer custodial services.

    • Article Two

      Brokerage companies referred to in the above-mentioned Article shall comply with the following conditions:

      1. The capital of the company shall not be less than BD350,000, or the equivalent in foreign currencies.
      2. The company shall provide a valid guarantee of not less than BD50,000, or the equivalent in foreign currencies, with a local bank in favor of the Exchange.
      3. The company shall have a comprehensive accounting and administrative system and records for registering all of the company's transactions.
      4. The company shall have an external auditor.
      5. The company shall prepare the annual financial reports and final audited accounts within the first three months of each financial year's end.
      6. The company shall have agreements with the clients in whose names the company deals in securities and financial instruments.

    • Article Three

      The Director of the Bahrain Stock Exchange shall implement this Resolution, which shall come into effect from the date of its publication in the Official Gazette.

      Minister of Commerce and Agriculture
      Chairman of the Board of Directors of the
      Bahrain Stock Exchange

      Issued on 2 Thee Al Qudah 1415 H
      Corresponding to 1st April 1995