Regulatory Alerts2017-09-18
Proposed Amendments to Offering of Securities Module (Module OFS) Volume 6
The Capital Markets Authority (CBB) of Bahrain proposes amendments to the Offering of Securities Module in Volume 6, requiring licensed banks and issuers to establish a trust under Bahrain Trusts Law 2006 to hold employee share securities. The rule changes clarify initial public offering requirements by mandating underwriting for equity listings on local exchanges, while introducing specific disclosure obligations for book-building outcomes in prospectuses. Industry feedback regarding administrative burdens and confidentiality is addressed by affirming that the trust structure effectively ring-fences employee shares from creditor claims without compromising existing remuneration governance.
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