Bahrain Stock Exchange

Bahrain Stock Exchange came into being in 1987. It started functioning with 29 companies. Bahrain Stock Exchange then grew to include the operations of 50 companies. It is currently operating as an independent institution. It is supervised by an independent board of directors. The Stock Exchange at Bahrain is chaired by the Governor of the Central Bank of Bahrain.

The Stock Exchange in Bahrain allows foreign participation in its trading activities. They can purchase, own or sell bonds, units of mutual funds as well as warrants of domestic joint -stock companies. Foreigners, who stay for a year or more, automatically qualify to own or trade up to 49% of a joint stock company?s equities. A foreigner however, cannot own more than 1% of a company's issued capital. There are 10 companies that allow foreigners to invest in Bahrain and its Stock Exchange. A few of them are the Arab Banking Corporation as well as the Al Baraka Banking Group. The Stock Exchange in Bahrain allows foreign security holders to enjoy all the privileges through the ownership of securities of joint stock companies here.



They receive dividends and other distributions without being subject to taxation. This is yet another right they enjoy by trading with the Bahrain Stock Exchange.

Securities listed on the exchange, with exceptions in certain cases, have been traded on the floor itself. As a rule, they must be traded though registered brokers. Thus the Stock Market here features as a Major Stock Market of the World. Brokers also have to ensure the protection of customers? funds and securities. Thus the clients are well taken care of by the laws of the exchange. Some banks whose stocks are traded at the Bahrain Stock Exchange include names like the Bank of Bahrain and Kuwait and the National Bank of Bahrain among others.

The Stock Exchange in Bahrain functions through certain set operations. The settlement and transfer of ownership of domestic joint stock securities is undertaken at the exchange through simple and straight forward processes.