New rule for REITs, Funds

Manama: Bahrain Bourse (BHB) announced it has adopted new guidelines for the trading of Real Estate Investment Trusts (REITs) and Funds Instruments listed at the Bourse.

A resolution regarding this was issued by Chief Executive Officer of Bahrain Bourse (BHB), Shaikh Khalifa bin Ebrahim Al Khalifa yesterday.

As per the guidelines, trading in the REITs and Funds Instruments Market will be conducted during the trading session of BHB, from Sunday to Thursday between 9:30am and 1:00pm. During which investors can submit their orders to the brokers to enter them in the REITs and Funds Instruments Market through the Automated Trading System that will match the buy and sell orders in accordance with the principles for matching orders as per the “Matching Priority” Rule of BHB.

The minimum accepted order in the REITs and Funds Instruments Market is BD500 (Five Hundred Dinars) or its equivalent in the REITs currency. 

The pricing mechanism implemented in the REITs and Funds Market will depend on supply and demand, and the Net Asset Value (NAV) will be an indication to specify the value of the Trust. 

The daily price fluctuation (up or down) is limited to a maximum of 10 per cent of the previous closing price, and the settlement day for the trades is two days following the trade date (T+2).