Bahrain Bourse amends rules for listing of firms

04/12/2011 00:00 AST

Bahrain Bourse has amended regulations and requirements for listing of closed companies at the bourse. A resolution in this respect was issued by board of directors chairman Yusuf Abdulla Humood.

The first article of the resolution stipulates cancelling two clauses.

The clause stipulating that the price of shares on the market should not be less than the paid-up percentage of the nominal value of each share was cancelled.

Another clause stipulating that the company should have achieved profits during the last two years preceding the submission of the application, or for three years during the last five years, was also cancelled.

"The amendment to the regulations and requirements of listing closed companies goes in line with the bourse's efforts to implement its comprehensive strategy which aims to develop all work aspects at the bourse and encourage listings," bourse director Fouad Rashid said.

He assured that this amendment, that states cancelling the requirement of achieving profits during the last two years preceding the submission of the application, or for three years during the last five years has been made taking into consideration one of the major listing requirements stipulating that the listed company should maintain financial soundness in terms of assets, liquidity, balanced financial structure and efficient performance, and that companies must abide by the rules and regulations of the Central Bank of Bahrain (CBB) and Bahrain Bourse, especially those relating to disclosure and transparency that ensure that investors are continuously aware of the positions of listed companies.

"We hope that those amendments stipulated in the resolution will encourage Bahraini shareholding closed companies or newly established companies to apply for listing on the bourse, and benefit from the facilities provided by the bourse concerning listing.

"The bourse will co-ordinate with the CBB to quickly finalise the approval procedures required for listing in order to encourage companies to list on the bourse," he added.

Mr Rashid said the bourse will implement the amendments for shareholding closed companies applying for listing from December 25.

Gulf Daily News