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The Bahrain Bourse, also called the Bahrain Stock Exchange (BSE), is the
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...
of
Bahrain Bahrain, officially the Kingdom of Bahrain, is an island country in West Asia. Situated on the Persian Gulf, it comprises a small archipelago of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island, which mak ...
. As at 2017, 42 companies were listed on the exchange. The exchange operates from Sunday to Thursday. Three indices track the Bahrain Bourse (BHB): the Bahrain All Share Index, the Dow Jones Bahrain Index and the Estirad Index. The BSE was established in 1987 by
Amiri decree An amiri decree is a decree, equivalent to a law, made by an emir or his representatives (Arabic: المرسوم الأميري), generally in Kuwait, Qatar and the United Arab Emirates. Examples are: * Amiri Decree Law No. 13 of 1984 (Bahrain ...
Amiri decree An amiri decree is a decree, equivalent to a law, made by an emir or his representatives (Arabic: المرسوم الأميري), generally in Kuwait, Qatar and the United Arab Emirates. Examples are: * Amiri Decree Law No. 13 of 1984 (Bahrain ...
No.(4)
and officially commenced operations on 17 June 1989, with 29 listed companies. It operated as an autonomous institution supervised by an independent Board of Directors, chaired by the Governor of the Central Bank of Bahrain. Bahrain Bourse (BHB) was established as a shareholding company under Law No. 60 of 2010 that replaced the BSE. The Bahrain Bourse is a member of the Federation of Euro-Asian Stock Exchanges.


Foreign ownership of securities

foreigners can purchase, own or sell bonds, units of mutual funds, and warrants of domestic joint-stock companies. Foreigners who reside in Bahrain for one year or more can purchase, own, and/or trade up to 49% of a domestic joint-stock company's equities. However, an individual foreigner may not own more than 1% of a company's issued capital. There are ten companies that are completely open to foreign investors: Arab Banking Corporation (ABC), Arab Insurance Group (ARIG), Ahli United Bank (AUB), Al Baraka Banking Group (BARKA), Bahrain Middle East Bank (BMB), Ithmaar Bank (ITHMR), Investcorp Bank (INVCORP), Bahrain Shamil Bank (SHAMIL), Al Salam Bank (SALAM), and TAIB Bank (TAIB). Foreign security holders are legally entitled to enjoy all the benefits of the ownership of securities of domestic joint-stock companies. They have voting rights on all matters submitted for approval, and receive dividends and other distributions tax free.


Taxation

There are no
capital gains Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period. An asset may include tangible property, a car, a business, or intangible property such as shares. A ca ...
or
dividend tax A dividend tax is a tax imposed by a jurisdiction on dividends paid by a corporation to its shareholders (stockholders). The primary tax liability is that of the shareholder, though a tax obligation may also be imposed on the corporation in the f ...
es in Bahrain on both foreigners and nationals.


Trading and settlement regulations

Securities listed on the BSE, with certain exceptions, must be traded on the floor through registered brokers, who are subject to standards and operate under terms, laws and by-laws of the BSE. Settlements and transfers of ownership of domestic joint stock securities are undertaken through the BSE. The sale and purchase of a security creates a binding contract on the part of the seller to deliver the security and on the part of the purchaser to make payment on the settlement date. The settlement period is two days after the trading date, ( T+2). The BSE management is continuously monitoring and reviewing the exchange's existing laws and procedures in an effort to further develop and enhance its contribution to the economy of Bahrain.


See also

* List of Mideast stock exchanges *
List of stock exchanges A list is a set of discrete items of information collected and set forth in some format for utility, entertainment, or other purposes. A list may be memorialized in any number of ways, including existing only in the mind of the list-maker, but ...


References

*Kingdom of Bahrain, Ministry of Labou
Unemployment Insurance System
Retrieved 6 November 2007.


External links


Official website
{{Authority control Financial services companies established in 1987 1987 establishments in Bahrain Financial services companies of Bahrain Companies based in Manama Stock exchanges in the Middle East