On this occasion, Mr. Abdulkareem Ahmed Bucheery, Chairman of Bahrain Bourse and Chairman of Bahrain Clear expressed his pleasure for the inauguration of Bahrain Clear that has been recently been licensed by the Central Bank of Bahrain. Mr. Bucheery said that the inauguration of the company marks a milestone in the history of the capital markets sector in the Kingdom of Bahrain, and is expected to attract more local and regional investments to contribute to enhancing investors’ confidence in this sector, as well as aid in enhancing Bahrain’s capital market rating by international indices providers.
“The establishment of Bahrain Clear is the outcome of the collective efforts of Bahrain Bourse’s officials along with the cooperation and support received from the Central Bank of Bahrain during the past couple of years. This achievement comes in line with the efforts of the Bourse to complete the implementation of its strategic plan aimed at developing various aspects of work, providing services in accordance with the international standards, and complying with the requirements of the Central Bank of Bahrain,” Mr. Bucheery said.
“The establishment of Bahrain Clear will allow the company to enhance the quality and quantity of its services, and will provide greater flexibility for the company to meet the expectations and needs of the company’s clients including issuers of securities, investors, institutions, custodians and others,” Mr. Bucheery added.
Shaikh Khalifa bin Ebrahim Al Khalifa, Chief Executive Officer of Bahrain Bourse and the Managing Director of Bahrain Clear said, “We are happy to establish Bahrain Clear which will be independently responsible for clearing, settlement and central depository services.
“This will allow the company to develop its current services and provide new services that are in line with international standards. One of the main objectives of Bahrain Clear is to enhance and diversify the post trade services and provide services that are in line with those applied in the advanced markets,” Shaikh Khalifa added.
It is worth mentioning that Bahrain Clear is a fully owned subsidiary of Bahrain Bourse with a disclosed capital of 5 million Dinars, and a paid up capital of 1 million Dinars. The Board of Directors of Bahrain Clear is headed by Mr. Abdulkareem Ahmed Bucheery, whereas Shaikh Khalifa Bin Ibrahim Al Khalifa is the Vice Chairman and Mr. Yaser Abduljalil Alsharifi, Mr. Mohammed Khalid Hamed, Mrs. Narjes Farookh Jamal, and Mr. Mahmoud Abdulaziz Al Meer are board members.
Bahrain Clear will undertake a range of activities, including the establishment, management and operation of systems for the deposit, clearing and settlement of securities transactions and derivatives, managing shareholder records directly, in addition to custodian activities and providing all advisory and technical services in the field of depository, clearing and settlement.
Bahrain Clear will also undertake the related services of transactions depository, clearing, settlement, central registry and registration. In addition, Bahrain Clear will handle the support for these activities including opening an investor number for individuals and companies with brokers, the deposit of listed and other companies’ securities, the conversion of securities between the brokers’ accounts, transfer of ownership of these securities, settlement and registration of ownership.
Bahrain Clear will be responsible of pledging and freezing the shares of listed and non-listed companies, managing the shareholders sharebook of the listed companies and registering members to the Central Depository System for the purpose of trading as well as providing securities services to the custodian. In addition, Bahrain Clear will provide services of companies’ corporate actions including bonus shares, stocks split and stock mergers and acquisition in addition to increment and reduction of capital.
Bahrain Clear will expand the services of the Central Registry to include the distribution of cash dividends directly to the bank accounts of shareholders in listed and other companies, and manage the meetings of general assemblies of listed companies, including e-voting. Bahrain Clear will also undertake lending and borrowing in securities and short selling and support services to the margin trading service. Bahrain Clear services will also include providing mutual funds services that include information related to mutual funds, providing custodian services to Bahraini investors in other Capital Markets and exchanges, and allowing Bahraini commercial banks to mediate for transactions execution on securities and financial instruments listed on the Bourse. This will enhance the confidence and credibility of the Bourse among all parties involved in the market operations.