CBB takes a big step forward with SRO

Manama  : The Central Bank of Bahrain (CBB) yesterday issued a resolution authorizing exchanges licensed by it as the “main point of contact” for all listing applications as part of the implementation of Self-Regulatory Organisation (SRO) model. 

“The resolution is valid for all concerned parties and persons in their respective fields, where issuers are intending to list their securities or for any concerned entity acting on their behalf,” said Abeer Al Sheikh Ebrahim Al Saad, Director of the Capital Markets Supervision Directorate at the CBB. 

The move, which will be effective 2 March 2018, requires exchanges licensed by the authority to issue its own listing rules, “which shall take into account the protection of the rights of investors, the Disclosure Standards and in addition to addressing systemic risk”. 

This is as per the Resolution No. (11) issued by CBB in coordination with the Bahrain Bourse, being the concerned exchange licensed by the CBB. 

“Providing local Exchanges with Self-regulation on the listing of securities and financial instruments will enhance the regulatory and supervisory role of Exchanges in all listing applications,” added Al Saad. 

She, however, said that the Capital Markets Supervision Directorate would continue to review the public offering and listing requests concurrently with the licensed exchange and to approve the registration of the prospectus. 

The development is in line with the implementation of the Self-Regulatory Organization (SRO) model of the Exchanges on listing securities and financial instruments post its initial public offering. 

The main objective for the CBB, according to Al Saad, is to provide the legal and regulatory framework for the SRO model of the Exchanges in regards to the listing of securities and financial instruments after being offered to the public.