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There
are currently 14 brokers/brokerage firms providing brokerage services at the
BSE, and they fall under the following categories:
Requirements for admission to BSE Membership:
Individual Broker:
(Established under Article 16 “First” of the Internal Regulations)
- Should be Bahraini and resident in Bahrain.
- Should carry out brokerage business on a full-time basis.
- Should not be less than twenty-five years of age.
- Should be of good conduct and behaviour.
- Should not have been declared bankrupt in Bahrain or abroad, nor previously
convicted of a crime and/or punished by restriction of freedom, or for a crime
affecting his integrity or honesty, unless he has been reinstated in all
respects.
- Should have a secondary school certificate or its equivalent. Alternatively, he
must possess extensive experience in financial or commercial matters that are
acceptable to the BSE Board. The Board may amend or add any additional
qualifications at any time it deems fit.
- Shall discharge all his financial obligations, including fees and commissions
payable to the BSE.
- Shall contribute a minimum of BD50,000 to the Guarantee Fund, or a higher amount
as prescribed by the Board.
- Should be registered with the Ministry of Commerce and Industry, and should be a
member of the Bahrain Chamber of Commerce and Industry.
- not transfer or sell the brokerage or market-making licence to another person
without the prior consent of the Board.
- Should be aware of the regulations applicable for trading and clearance at the
Exchange.
- Must
comply with all other conditions, as stipulated by the BSE’s Board.
Brokerage firms:
(Established under Article 16 “Second” of the Internal Regulations)
- Must be a Bahraini joint stock company, or a limited liability company whose
shareholders are all of Bahraini nationality. However, in certain circumstances
permission will be granted for foreign brokerage firms to be licenced as
brokers, provided that these companies have a distinguished record that could
add an international dimension to the brokerage profession on the BSE, and
contribute towards attracting foreign investments. The same is applicable to
non-Bahrainis working with licenced brokerage or market-making companies.
- Must issue its annual audited financial statements within three months of the
end of its financial year, as well as issue unaudited half-yearly financial
reports.
- Must exclusively carry-out brokerage activities on securities, however it may
perform other related activities with the approval of the Board.
- Must meet all its financial obligations, including fees and commissions due to
the Exchange.
- Employees should comply with the same conditions as those laid out above for
individual brokers with respect to legal status and conduct. They must have
been educated to secondary school certificate level or its equivalent, and
obtained the Investment Representative Programme Certificate (equivalent to the
US SEC Series 7 qualification requirement of US brokers) or any similar
qualifications.
- Its employees, managers, partners, administrators, or those who undertake brokerage
or market-making functions, should not have been declared bankrupt in Bahrain or
abroad, or that any one of them has been convicted of an offence or punishable
by restriction of freedom for a crime affecting his integrity or honesty, unless
he has since been reinstated.
- The
minimum capital should be BD30,000 for limited liability companies and BD200,000
for joint stock companies, which can be increased by the Board at any time.
- Contribution to the Guarantee Fund should not be less than BD 100,000.
- Shall be registered with the Ministry of Commerce and Industry and shall also be
a member of the Bahrain Chamber of Commerce and Industry.
- Representative should have adequate knowledge of the Exchange’s regulations and
the procedures for dealing and clearance.
- May
not transfer or sell its licence to another company, without the prior consent
of the Board.
- Shall satisfy all other conditions, as stipulated by the Board.
- Undertakes to buy and sell listed securities and instruments on behalf of its
clients only.
Brokerage firms:
(Established under Article 16 of the Internal Regulations in conjunction with Resolution No. 2/1995)
Brokerage firms must comply with the conditions stipulated by Article 16 “Second” of the Internal Regulations except for the following
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The
minimum capital of such brokerage firms should not be less than BD350,000.
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They
should contribute to the Guarantee Fund a value of not less than BD 100,000.
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They
are licenced to provide the following services:
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To
trade in securities of local, GCC and international issues registered at the
BSE.
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Permitted to trade on behalf of their clients, as well as for their own
account.
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Offer
custodianship.
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Offer
advisory and research services.
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