Capital Markets Supervision
The CBB's Capital Markets Supervision Directorate ('CMSD') is mandated to supervise and regulate the Kingdom's capital markets; its main objective being to maintain a transparent, fair and efficient capital market for ensuring investor protection, thereby protecting Bahrain's integrity and reputation as the region's leading financial centre.
In pursuing its mandate, the CMSD strives to comply with all relevant international standards, in particular those of the International Organization of Securities Commissions (IOSCO). Bahrain was last reviewed for compliance with IOSCO's core principles in 2005-06, by the IMF and in 2008 became a signatory to the IOSCO MMOU concerning consultation and cooperation and the exchange of information: a copy of the IMF's detailed assessment and the IOSCO MMOU is available under 'Related Information'.
Currently, the CBB is working on developing Volume 6 of the CBB Rulebook which, when completed, will update and consolidate existing regulations relating to capital markets in Bahrain, into a single, comprehensive and structured publication. This project commenced in 2007 and is to be completed in 2011.
CMSD, in order to boost market participation in this process, would like to draw the attention of the market to these new developments and to obtain feedback on the consultation papers. Consultations papers can be viewed on the CBB website by clicking here.
Final versions of the modules when issued to the markets are available in the Rulebook section of the website and can be viewed on the CBB website by clicking here.
Functions & Contact Details
- regulates and supervises licensed exchanges, clearing houses and central depositories.
- regulates and supervises licensees that are members of licensed exchanges, clearing houses and central depositories, with respect to their activities on those exchanges;
- approves the listing and/or public offerings of securities;
- to ensure the implementation of the disclosure standards, corporate governance principles and the compliance of the listed comapnies.
- undertakes market surveillance, investigations and enforcement; and
- undertakes investor education initiatives.
Capital Markets Supervision Directorate
The Central Bank of Bahrain
PO Box 27
Kingdom of Bahrain
Tel: +973-17 547 907
Fax: +973-17 532 957
The CBB's supervision of licensed exchanges consists of on-site and off-site supervision.
The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed exchanges with CBB requirements stipulated in the Markets and Exchanges (MAE) Module of CBB Rulebook Volume 6.
Licensed Clearing, Settlement and Central Depository Systems
The CBB's supervision of licensed clearing, settlement and central depository systems consists of on-site and off-site supervision.
The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed clearing, settlement and central depository systems with CBB requirements stipulated in the Clearing, Settlement and Central Depository (CSD) Module of CBB Rulebook Volume 6.
Market Intermediaries and Representatives
The CBB's supervision of licensed market intermediaries consists of on-site and off-site supervision.
The purpose of the CBB's supervision and monitoring is to ensure compliance by the licensed market intermediaries with CBB requirements stipulated in the Market Intermediaries and Representatives (MIR) Module of CBB Rulebook Volume 6.
The CBB's Disclosure Standards provides for timely, comprehensive and specific disclosure requirements and conditions applicable to public offerings and initial listings; contents of the prospectus; ongoing financial reporting requirements; and continuous disclosure of material events and developments. The CBB's Guidelines on the Issuing, Offering and Listing of Debt Securities also contains equivalent requirements applicable to debt securities.
The CBB acts as the listing authority. It also reviews prospectuses for initial and public offerings, as well as right offerings, of securities.
CMSD intends to develop investor education programmes, for instance through the distribution of brochures, and presentations to schools and universities.
CMSD also supports the work of the Compliance Directorate, which is mandated to combat financial crime, in identifying any attempts to defraud investors. Investor alerts- for instance relating to boiler room scams- are posted on the consumer information section of the CBB website.