The Bahrain Monetary Agency (BMA) has issued comprehensive guidelines for the issuance, offering and listing of debt securities.
The rules are aimed at encouraging and facilitating the use of debt securities as a source of financing by liberalizing the offering and listing requirements and providing adequate measures to protect the interests of the debt-holders, reported a press release.
The guidelines set out detailed regulations and procedures related to the different stages of issuance of a debt security. They are in line with BMA's overall strategy to develop and activate both the primary and secondary debt securities markets.
"The principle objective of the debt securities guidelines is to facilitate and encourage the use of debt securities or fixed income instruments as important alternative funding options for the private and public sector and either on conventional or Islamic basis," said Deputy Governor of the BMA, Khalid Abdulla Al Bassam at a press conference to introduce the new rules.
The rules are based on existing applicable laws and regulations, particularly the Commercial Companies Law and the Bahrain Stock Exchange Law, as well as international best practice. They were reviewed by a specialized team comprising BMA officials and market players, as well as the World Bank, prior to their issuance.
BMA, the Kingdom's central bank, currently licenses a total of 362 institutions, of which 186 are banks and banking-related institutions, 163 insurance and insurance-related firms and 13 capital market brokers. — (menareport.com)
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