Bahrain Bourse

The BHB regulates the conduct of its members and establishes regulations and standards for listing and dealing in securities. It also operates as a clearinghouse and supervises settlement. BHB is managed by a board of directors consisting of 9 directors and chaired by H.E. the Minister of Commerce. The Ministry of Finance & National Economy, the Bahrain Monetary Agency and Bahrain Chamber of Commerce & Industry also have representation on the board. BHB membership requirements along with the company listing requirements are outlined in the BHB Law and By-Law

OFFICIAL TRADING HOURS 10:00 am to 12:00 noon (Bahrain Standard Time) GMT +3
TRADING DAYS Sunday through Thursday
SETTLEMENT PERIOD T+2
TRADING MECHANISM
The Exchange previously adopted a “Written Auction System”, which allowed the brokers/dealers to put their bids and offers for each issue on the Board. In 1999 the trading mechanism was automated to facilitate trading operations.
SETTLEMENT METHOD Securities are transferred from the selling broker to the buying broker through the Clearing and Settlement Unit (CSU) at the Exchange. Currently, clearing and settlement is done manually where transactions are cleared on a trade to trade basis (i.e. payment versus share certificates).
STOCK LENDING & SHORT SELLING Not permitted
MARKET PRICE LIMITS 10%
FOREIGN INVESTMENT REGULATIONS There are no restrictions on foreign investment in offshore companies. For local entities, GCC nationals can own up to 100% and non-GCC nationals can own up to 49%, subject to the following restrictions:
  Bahrain Kuwait Insurance Co: Bahraini nationals 45%; Kuwaiti nationals 45%.
  Bahraini Saudi Bank: Bahraini nationals 45%; Saudi nationals 45%.
  Delmon Poultry: GCC nationals can own up to 25%.
  Bahrain Flour Mills: GCC nationals can own up to 25%.
EXCHANGE CONTROLS Foreign investors can open a BD or foreign currency account in any local bank with no restrictions.
TAXATION Withholding tax on dividends 
Income tax on income 
Capital gains tax
None
None
None
COMMISSION STRUCTURE A commission of 0.3% on the first
BD 20,000 worth of transactions
  A commission of 0.2% on amounts in excess of BD 20,000 but less than 
BD 50,000
  A commission of 0.1% on amounts in excess of BD 50,000
  The minimum commission is BD 2 
Certificate fee is BD 1