The Bahrain Monetary Agency (BMA) has published a consultation paper, setting out proposed regulations on a securities and exchange regulatory framework.
The proposed Securities and Exchange Regulation (SER) is an enabling law for the securities industry in the Kingdom. It will apply to all participants of capital market related activities, including offering of securities, stock exchanges, clearing houses, brokers-dealers, representatives, investment advisors, custodial services, corporate finance advisory services, training and examination services and all other regulated activities related to capital market products and services.
The proposed regulations were necessitated after the BMA assumed responsibility for regulating and supervising the entire financial services sector, comprising banking, insurance and the capital market.
In line with its expanded responsibilities, assumed in August 2002, the BMA established its Capital Markets Supervision (CMS) Directorate, which is directly responsible for regulating and supervising the capital market and all institutions and individuals engaged in any activities related to capital markets.
The SER is based on existing regulation governing the Bahrain Stock Exchange (BSE), as well as international best practice, especially recommendations and standards specified by the International Organisation of Securities Commissions (IOSCO), and other international professional institutions.
The regulatory development programme is a major component of a strategy being implemented by the BMA to reinforce Bahrain's reputation as the financial capital of the Middle East. The Kingdom hosts the largest concentration of financial institutions in the region. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
