Manama, Dec. 3 (BNA): The Bahrain Bourse announced the implementation of the Issuers Violations Framework as of January 2, 2023, after obtaining the approval of the Central Bank of Bahrain and in accordance with the listing rules on the Bahrain Bourse related to the powers. Bahrain Bourse to impose administrative fines on issuers in case of non-compliance with the Listing Rules and any other applicable Bahrain Bourse business rules.
The Issuers’ Violations Framework sets forth the rules for imposing financial fines and/or penalties, the Violations Framework that applies to non-compliance with the Listing Rules, and any other applicable rules, regulations and business directives of Bahrain Bourse as it deems appropriate.
According to the framework, administrative fines will be imposed on exporters based on the impact and frequency of the violation under consideration, which can impose an administrative violation such as suspension of trading or a financial fine ranging from BD 500 to BD 10,000 for each violation. . Violations can reach BD 100,000 for listed companies that exceed 30% of the issuer’s share capital that is traded outside the main market.
All cases will be evaluated and reviewed by the Violations Committee formed by the Bahrain Bourse. The committee will be responsible for reviewing and evaluating the high frequency violations of Bahrain Bourse rules and regulations and determining the penalties to be imposed on issuers and members based on the impact and frequency of the violation in a timely and cost effective manner. The Disciplinary Appeals Board was formed to review and handle appeals arising from decisions issued by the Bahrain Bourse Disciplinary Board and the Violations Committee to ensure a high level of protection for all relevant parties.
Shaikha Al-Zayani, Director of Listing and Disclosure at Bahrain Bourse commented, “The issuance of the Issuer Violations Framework is a vital step towards preventing violations and associated risks in the market which aims to enhance transparency and fairness and enhance the resulting issuer disclosure. In enhancing investor protection throughout the market, and in line with the Bahrain Bourse’s commitment to placing the Bahraini capital market at the forefront of adopting global financial market standards.
Shaikha added, “The administrative fines framework is in line with the Bahrain Bourse’s role as a limited liability company, and in line with the IOSCO Principles for the Regulation of Self-Regulatory Securities.”
It is worth noting that the Bahrain Bourse issued an advisory paper regarding the proposed issuers’ violations, and it was distributed to the relevant parties and stakeholders to receive their opinions and observations before implementing the administrative fines. The Issuers Violations Framework has been circulated to all listed companies and other related parties as part of Bahrain Bourse’s efforts to raise awareness regarding the implementation of the framework.
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